From next season, Sugar Commissioner Shekhar Gaikwad will start taking action against sugar mills which fail to clear the payment of farmers by the 14th day of cane sale.
Gaikwad, who was speaking at a pre-season stock-taking meeting organised in Pune on Tuesday, said mills that fail to clear payments will face action, such as attachment of their properties under the Revenue Recovery Code.
In the meeting, Gaikwad said his office will be issuing attachment orders on the 14th day of non-payment of dues. “Last season, we had taken the step to issue such orders early in the season, which had resulted in 98 per cent clearing of FRP,” he said.
The Sugarcane Control Order, 1966, mandates that mills have to pay the Fair and Remunerative Price (FRP) by the 14th day of the sale of cane.
If they fail to pay the dues, they have to pay additional interest of 15 per cent per annum to the farmers. The Order also allows mills to enter into an agreement with farmers for payment of FRP in installments. Last season, only 36 mills had inked such agreements.
Of the 195 mills which took season last time, 129 cleared all their dues, but 66 mills still had arrears to pay. Till August 15, mills had cleared dues of Rs 22,646.26 crore, but were yet to pay over Rs 550 crore.
Last season, Gaikwad had issued attachment orders against 76 mills for failing to pay the basic FRP to their farmers.