Sugar millers in Maharashtra still owe farmers `996.12 crore in Fair and Remunerative Price (FRP) payments from the season of 2018-19 and `243.83 crore from the previous season.
According to the data released by the Maharashtra Sugar Commissionerate, millers have paid 96% of the FRP till date and 74 Revenue and Recovery Code (RRC) orders have been issued to 58 mills in the state.
Sugar commissioner Shekhar Gaikwad told FE that some RRC orders had to be issued twice to the same mill since these had failed to make the payments in time. Around 195 sugar mills operating in 2018-19 season to crush 952.11 lakh tonne to produce 107.21 lakh tonne of sugar this season which had just been completed. The total FRP dues during the season were `23,116.10 crore of which FRP payments have been made for `22,137.15 crore.
Around `996.12 crore still remains to be paid by millers. This includes `556.44 crore (nearly 2%) from the 74 RRC orders issued against mills and `439.68 crore (2%) that still remains to be paid to farmers at the commissionerate level.
Some 81 factories still owe FRP dues to farmers. Of the 195 factories that participated this season, some 114 factories have made 100% FRP payments, 59 factories have made 80-99% payments, 16 factories have made 60-79% FRP payments and six factories have made less than 59% FRP payments. The commissioner said recovery proceedings would continue as per procedure.
Meanwhile, export subsidy worth `3,100 crore has been cleared by the Centre of which `2,550 crore has been disbursed. Some millers with negative net worth have not been eligible for subsidy worth `550 crore, Gaikwad said.
Ahead of the 2019-20 season, millers have urged the central government to make provisions for export of 50 lakh tonne of the sweetener. Earlier, sugar millers from the state had decided to approach Chief Minister Devendra Fadnavis on the soft loan announced by the Centre after the Maharashtra State Cooperative Bank (MSC) did not approve loans of some 27 sugar mills that have reported negative Net Disposable Resources (NDRs).
The Cabinet Committee on Economic Affairs has decided that the approved soft loans were to be provided to those units which have already cleared at least 25% of their outstanding dues in the sugar season 2018-19. The excess output and inability of mills to sell sugar have caused short margins resulting in NPAs for these mills.
Banks have been demanding bank statements of mills whose bank accounts have been in the red and have reported NDRs. MSC Bank officials stated the issue had been resolved and the loans had been cleared. Sanjay Khatal, MD of the Maharashtra State Cooperative Sugar Factories Federation, also stated the issue had been resolved. It is true that the subsidy worth `550 crore is yet to be cleared but this is likely to be resolved after the Union Budget, he said.
The Centre had announced a soft loan of up to `10,540 crore to the sugar industry to help mills clear mounting arrears to cane growers, a move that would cost exchequer up to `1,054 crore as interest subsidy. The Centre will bear the interest subvention cost at the rate of 7-10% to the extent of `553 crore to `1,054 crore for one year.