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Solapur: Maharashtra State sugar Commissionerate has initiated action against sugar mill in Solapur which has flouted the (Fair and Remunerative Price) FRP rules. Siddhanath sugar mill faced the heat under Revenue Recovery Code (RCC) and the Commissionerate office seized 1 lakh 24 thousand 615 quintal sugar stocks.
According to the reports, the mill owes Rs 33 crores to sugarcane farmers for 2018-2019 sugar season.
Earlier, Maharashtra sugar commissioner Shekhar Gaikwad has slapped RRC notices on 17 sugar mills in the district that have failed to pay FRP to farmers and warned of seizure action, following which seven sugar mills cleared the FRP and many assured to pay dues after getting an approval of soft loans. But Siddhanath sugar mill failed to clear the sugarcane arrears.
Sugar season in Maharashtra comes to an end, but still, sugarcane arrears in Maharashtra stand at Rs 1436 crore 77 lakh.
The Sugarcane Control Order of 1966 mandates payment of the FRP to the growers within 14 days of delivery of cane and 15 per cent interest on it if they fail to adhere to the timeline. Millers have been saying that excess sugar production and depressed Indian sugar prices have led to an accumulation of cane price arrears.