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Sugar body writes to CM: Order to attach property unfair, stop ongoing action against mills
Date:
01 Feb 2019
Source:
The Indian Express
Reporter:
Partha Sarathi Biswas
News ID:
35932
Pdf:
Nlink:
IN A letter to Chief Minister Devendra Fadnavis, the Maharashtra State Cooperative Sugar Factories Federation has urged the CM to intervene and stop the ongoing action against sugar mills by the state sugar commissioner.
Jaiprakash Dandegaonkar, president of the federation, said the action, including the threat of FIRs against chairman and directors of sugar mills, was unfair on the industry at large. Sugar commissioner Shekhar Gaikwad has issued orders of property attachment against 39 mills whose history of payment for cane purchase was dismal.
This was after Raju Shetti, Swabhimani Shetkari Sanghatana MP, led over 5,000 farmers to the commissionerate in Pune to demand payment on Monday.
Farmers, who were preparing to sit on an indefinite strike, had relented after Gaikwad gave them a written assurance on action against the mills.
The order, along with seizure of properties and auctioning them to raise funds for cane payment, also included instructions to file FIRs against the chairman and directors of sugar mills.
According to the Sugarcane Control Act, 1966, payment of the fair and remunerative price (FRP) by the mills within 14 days of cane delivery by the farmer is mandatory. However, this year, due to liquidity crunch, mills have run up arrears over Rs 5,300 crore to date. Of the 191 mills, only 11 mills have paid 100 per cent dues while 39 mills are yet to pay anything at all to the growers. Most mills have paid 80 per cent FRP at the first go.
Following Gaikwad’s written order, 39 orders for seizure of properties were issued in the next 48 hours. Sanghatana members have ensured the district collectors issue orders to the authorities to start the work of attachment of the properties.
According to procedure, the district collector attaches property, in this case sugar produced, and auction the same to recover the cost to pay farmers.
In his letter, Dandegaonkar said mills were faced with a liquidity crunch that has prevented them from paying up. “Also, during meetings with the state government, it was assured that no action will be taken on mills who pay the FRP in installments,” the letter read.
The production cost of sugar, the letter said, was Rs 3,400 per quintal while the present selling price is around Rs 2,900 per quintal. “It’s difficult for mills to raise the money to pay the full FRP,” the letter added.
Mills in Maharashtra exported 2.58 lakh tonne sugar last year, but are yet to receive the subsidy of Rs 55 per tonne as promised.
Similarly, no action has been taken to pay the subsidy for creating a buffer stock.
“The Sugarcane Control Order of 1966 does not have any provision for filing FIRs.
We request you to direct the sugar commissioner to desist from doing so,” the letter stated.
The sugar mills that are facing action have decided to approach the High Court to challenge the order. Sugar millers, cooperative and private, are set to meet in Pune on Monday to discuss the matter.
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