Maharashtra: 61 sugar factories told to extend EPF benefits to cane labourers

Following a meeting with representatives of sugar factories in Maharashtra last month, the regional Employees Provident Fund (EPF) office in Solapur has asked 61 sugar factories in Solapur, Osmanabad and Latur districts to extend EPF benefits to labourers engaged in sugarcane cutting and transportation.

Officials from the regional EPF office in Solapur said all these 61 sugar factories were last week directed to start remittance of EPF dues. Of the 61 sugar factories, 41 are in Solapur, 12 in Latur and 8 in Osmanabad. In these three districts, there are approximately 80,000 labourers involved in sugarcane cutting, said an official.

“Representatives of the factories said at the meeting in November that the issue had been raised in 2003 and later closed. We had asked them to provide documents about this, which were not submitted. However, we found that the Central EPF office in Delhi had clearly said in 2002 that EPF should be made applicable to sugarcane labourers. In response to a query from the Solapur EPF office, the Delhi office again clarified that EPF is indeed applicable and asked us to start enrolling these employees to avail of the benefits,” said a senior EPFO official, adding that action was not taken previously due to pressure from the sugar lobby.

At the meeting in November, the factories had objected saying that the sugarcane labourers are not employees of the factories. The factories are now expected to approach the Maharashtra State Co-Operative Sugar Factories Federation, an apex body of sugar factories in the state, to resolve the issue.

Hemant Tirpude, regional EPF commissioner, Solapur, said sugar factories have been given seven days’ time for extending EPF benefits to sugarcane labourers.

“If they do not act on it, we will start issuing show cause notices,” said Tirpude.