The Maharashtra government has asked sugar mills to pay farmers 15 per cent interest per annum on cane arrears for 2017-18 (October -September).
The State sugar commissionerate has said it has received complaints from various organisations about mills not paying interest on the dues owed to farmers, an industry official told Cogencis.
Sugar mills have to make payments to farmers within 14 days of cane purchases, failing which the amount is counted as arrears under the the Sugarcane Control Order, 1966.
Sugar mills across Maharashtra owed about ₹1,770 crore to cane farmers as of May 31. Mills in the State have produced a record 10.7 million tonnes sugar as of May 23 for the ongoing season.