Indian sugar mills association

Marathwada mills declared Rs.1500/tonne as the first installment of cane payment

Date:	04 Dec 2015

Source:	The Economic Times

Reporter:	Jayashree Bhosale

News ID:	5022

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PUNE: Sugar mills from Marathwada region of Maharashtra have declared to pay Rs 1500/tonne as the first installment of cane payment to the sugarcane farmers as against the legally binding fair and remunerative price (FRP) of Rs 2400/tonne for the region.

Though the Sugarcane Price Control Board is meeting today in Mumbai to take a call on sugarcane price for the current season as well as the FRP payment for last year's cane, millers are sugar that they can pay the FRP only in installments and not as one time payment as being demanded by the farmers' associations.

The Maharashtra State Co-operative Bank ( MSCB), the apex co-operative bank in Maharashtra increased the margin money it pays to the sugar co-operatives by 5% of the sugar's valuation. Till November, 2015, the bank was paying Rs 1180/tonne to the sugar mills for cane payment, which has been increased by Rs 220/tonne. Thus the mills will now get Rs 1400/tonne for cane payment. The state government also waived purchase tax on cane, making another Rs 100/tonne available for cane payment.

"We are able to pay Rs 1500/tonne as the first advance thank to the steps taken by the MSC bank and the state government," said BB Thombare, chairman and managing director, Natural Sugar and Allied Industries.

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