Pune: Private sugar mills in Maharashtra are awaiting nearly Rs 500 crore in subsidies that remain unpaid, even as the state government enforces strict rules denying crushing licences to mills that fail to clear government dues or fees, Agrowon reported.
Industry representatives claim the government has treated cooperative and private sugar mills differently in the distribution of subsidies. The dispute has now reached the Supreme Court of India after the state challenged a court order in favour of the mills.
The issue is linked to the Centre’s Soft Loan–2015 scheme introduced to help sugar mills clear pending Fair and Remunerative Price (FRP) payments to sugarcane farmers. Under the scheme, loans were arranged for both cooperative and private mills at an interest rate of 10 percent in the first year.
The Maharashtra government had announced that it would bear the interest for the remaining four years. Although subsidy amounts were communicated to both cooperative and private mills, industry representatives said the payments were released only to cooperative sugar factories.
The matter was earlier raised before the ministerial committee that decides policy for the crushing season. B. B. Thombre, president of the West India Sugar Mills Association, had brought the issue before the panel, which directed the sugar commissioner’s office to submit a proposal within a month. However, industry sources say the subsidy was not released even after several years.
Private mills then approached the Bombay High Court, which ruled in their favour and ordered the state government to release the subsidy. According to sources, the state later moved the Supreme Court challenging the decision.
Another dispute relates to subsidies announced for the 2010–11 season to address surplus sugarcane, including financial support for reduced sugar recovery and transportation of cane. Private mills claim they did not receive these funds either.
The High Court had directed the government to release the subsidy in this case as well, but industry representatives say around Rs 8.45 crore is still pending.
Speaking to Agrowon, Thombre said the alleged discrimination against private sugar mills must stop and urged the state government to release the pending payments immediately and withdraw its petition from the Supreme Court. He added that the association is continuing to pursue the matter.
