Non-payment of fair and remunerative price (FRP) to cane growers has resulted in suspension of crushing licence of 23 sugar mills on Monday while two mills had their crushing licences cancelled by the sugar commissioner.
Mills managed by senior leaders like former revenue minister Balasaheb Thorat, NCP MP from Madha Vijaysinh Mohite Patill, NCP MLA Jaiprakash Dandegaonkar and former cooperative minister Harshvardhan Patil are also on the list of mills which have faced the axe.
Officially, the crushing season in the state ended in early May with 740.76 lakh metric tonnes of cane being crushed and 836.88 lakh quintal of sugar being produced. However, the end of the season has not seen mills clearing their dues with many mills running into unpaid cane dues.
Prior to Monday’s action, sugar commissioner Dr Vipin Sharma had cancelled the licence of 11 mills and suspended the licence of at least 39 mills during the present crushing season. Also, auction of sugar stock of more than 12 mills was ordered by the commissioner.
Monday’s action was against mills which have paid below 90 per cent of the FRP. A majority of the mills which faced action were in Marathwada with few others in Pune, Solapur and Ahmednagar, among other districts. The two mills which had their licences cancelled were also fined with the total quantum of fine being at least Rs 40 crore.
Cancellation of licence results in levying of fine of Rs 500 per quintal of cane crushed which the mill has to pay in order to get a crushing licence for the next crushing season.
As of May 31, the state had to clear unpaid FRP worth Rs 16,489 crore of which Rs 15,586 crore has been paid. Of the 177 mills which had started crushing this season, 31 mills have paid 100 per cent FRP while six mills have paid more than the FRP.
Last week, during the meeting of the cane control board, millers and growers led by Swabhimani Paksha MP Raju Shetti had locked horns over the payment of FRP. Citing the rise in sugar price in the market, Shetti had asked for payment well and above the FRP, which millers have flatly refused.