Maharashtra sugar manufacturing to the touch 107 lakh tonne; season in final leg

Up to now, round 87 factories have made 100% cane funds and almost 101 factories nonetheless owe dues to farmers.

The 2020-21 sugar season in Maharashtra is in its final leg and is prone to finish by Might 15, prime officers stated. Sugar manufacturing has already touched 105 lakh tonne and is prone to attain 107 lakh tonne, Shekhar Gaikwad, state sugar commissioner, informed FE.

Gaikwad stated solely 46 of 188 factories are nonetheless operational and staff of 142 factories have returned to their hometowns. Up to now, the state has crushed some 999.50 lakh tonne of sugarcane to supply 105 lakh tonne sugar with a restoration of 10.48%. One other 2 lakh tonne of cane remains to be out there for crushing and this needs to be accomplished by the primary fortnight of Might, he stated.

Most mills in Kolhapur and Sangli areas, that are thought of the sugar bowls of the state, have ended their season. Majority of the mills in Pune and Satara have both ended their season or are within the final leg, officers stated, including that mills within the Marathwada area needs to be among the many final to complete crushing by Might. Regardless of excessive manufacturing, mills have been discovering it troublesome to pay farmers because of lack of demand for sugar.

In line with the newest arrear report, factories nonetheless owe farmers Rs 2,073.05 crore in cane funds or truthful and remunerative value (FRP) dues. Mills have thus far paid Rs 19,286.65 crore, amounting to 90.29% of the whole FRP funds this season. The whole FRP payable to farmers is Rs 21,359.69 crore. The Sugar Commissionerate has taken motion in opposition to 19 mills for his or her failure to make FRP funds. Income and restoration certificates orders have been issued to those 19 mills for attachment of their properties. The Sugarcane Management Order of 1966 mandates that mills pay the essential FRP inside 14 days of buy, failing which mills are to pay 15% curiosity per yr. Failure of mills to take action permits the commissioner to get better the identical as income dues by attaching and auctioning off their properties.

Up to now, round 87 factories have made 100% cane funds and almost 101 factories nonetheless owe dues to farmers. Whereas manufacturing has been good, sugar gross sales has been a better fear for mills, with most struggling to fulfill their month-to-month gross sales quota. Most mills foresee working capital requirement issues within the subsequent season with extra sugar on their hand.

Cooperative millers have subsequently opposed the 22 lakh tonne of sugar gross sales quota given for April. With restrictions coming into place because of surge in Covid instances, millers stated assembly the elevated quota might be troublesome and is prone to lead to lapsed quotas. Jaiprakash Dandegoankar, president of the Nationwide Federation of Cooperative Sugar Factories, stated restrictions have affected sale of sugar as consumption in accommodations and eating places has taken a success and mills have been discovering it troublesome to fulfill their gross sales quota, leading to a liquidity disaster.

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