Around 122 sugar mills in Maharashtra have completed crushing, with the state’s sugar season rolling in to its last leg.

 

A total of 195 factories participated in the operation this season. Of these, 93 factories are private and 102 are from the cooperative sector. According to the latest Maharashtra Sugar Commisisonerate report, the factories have crushed 924.11 lakh tonnes to produce 103.41 lakh tonnes of sugar at a recovery rate of 11.19%. Last season, 41 factories had completed operations during the same period, and had crushed 872.2 lakh tonnes to produce 96.91 lakh tonnes of sugar with a recovery rate of 11.11%. Some 186 factories had participated in the whole crushing season last year.

 

As of March 15, sugar mills have managed to pay Rs 14,881.01 crore of the Rs 20,653.02 crore they owed to farmers as the fair and remunerative price (FRP). But, with over Rs 5,000 crore in cane dues, sugar millers face possible action from the commissionerate. So far, revenue recovery certificates (RRCs) have been issued against 49 factories in the state.

 

Around 193 sugar factories in the state were expected to pay Rs 19,623 crore to farmers. However, with white sugar prices on the down-slide, factories were not able to make payments to farmers in one go. By March 15, FRP dues came down to Rs 4,926 crore or 24 %.

 

Around 76% of the payments have been received by farmers till now. State sugar commissioner Shekhar Gaikwad has written to district collectors and CEOs of zilla parishads, urging them to buy sugar, for the various institutions in their jurisdiction such as hostels and hospitals, directly from mills. The commissioner seeks to encourage sugar sales after millers found themselves struggling to sell the commodity in a depressed market. The attempt to boost retail sales of sugar by establishing outlets outside factory premises also has not seen much response.

 

This season, even as the February sales quota target still remains to be met,and factories managed only 30% of the quota, the Centre has issued a high sales quota in March of nearly 24.50 lakh tonnes, which has resulted in subdued market sentiment. The next season is likely to commence with an opening stock of 125 lakh tonnes. Gaikwad has been propagating this new model for mills to provide additional revenue stream for factories. Sweet shops, cold drink manufacturers are expected to be the target buyers from such retail outlets.

 

Normally, mills sell sugar to traders, who purchase it in bulk through tenders floated by millers. Once such deals are finalised, wholesale traders pass on the commodity to retail traders in small towns and thereafter into the hands of retail consumers. The commissioner maintains they also have to adopt other models like keeping an inventory of possible buyers who may require sugar in bulk. A mode of this nature could free more stocks to mills and enable more sales, he said.