Maharashtra: Sugar commissioner fines three mills Rs 14 crore for early cane crushing

Kolhapur: The Sugar Commissioner’s office in Pune has imposed fines totalling Rs 14 crore on three sugar mills for crushing sugarcane before receiving the required licence, reports The Times of India.

The state government had set November 1 as the official start of the crushing season. However, the commissioner’s office received reports that some mills had begun crushing either before this date or without obtaining a cane-crushing licence. Following this, a penalty of Rs 500 per tonne of sugarcane crushed ahead of schedule was levied.

The mills have been directed to clear the fines within a week.

Sugar factories are required to apply for a cane-crushing licence from the commissioner’s office before starting operations. Licences are issued only after confirming that mills have cleared all mandatory payments, including the recent state government levy of Rs 10 per tonne for farmers affected by heavy rain and floods, as well as contributions meant for the welfare of sugarcane cutters.

Officials said a common start date for crushing is fixed to maintain equality among mills. Despite this, some mills start operations early to stop farmers from taking their cane to neighbouring Karnataka, where crushing usually begins about 10 days earlier than in Maharashtra. Last month, three mills in Satara district were also penalised for starting crushing ahead of schedule.

Sugar Commissioner Sanjay Kolte said mills have the option to challenge the action in court. He explained that early crushing often happens either due to technical issues or because of competition among mills to begin operations before licences are issued or before the notified start date. He added that the penalty has been fixed by the state government under law.

Officials pointed out that crushing without a licence is illegal and can result in farmers being deprived of the mandatory fair and remunerative price. If mills fail to pay this price, the commissioner has the authority to issue recovery orders and seize sugar stocks to clear farmers’ dues.

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