In want of any clear government directive, mills continue to pay farmers in instalments. (Express Photo by Praveen Khanna) Weeks after the Maharashtra government accepted sugarcane farmers’ demand to provide them with a one-time fair and remunerative Price (FRP) rather than in two instalments, it is yet to be implemented on the ground. In want of any clear government directive, mills continue to pay farmers in instalments.
In February 2022, the Maha Vikas Aghadi (MVA) government passed a resolution, allowing the FRP to be paid in two tranches. The first instalment, which was to be paid within 15 days of the purchase of sugarcane, would be calculated at the base recovery (sugar produced versus cane crushed expressed as a percentage) of 10 per cent. The next instalment would be paid within 15 days of the closure of the sugar season after the final recovery is calculated.
Farm union Swabhimani Shetkari Sanghatana firmly opposed the move and its leader MP Raju Shetti met Chief Minister Eknath Shinde following which the government announced a rollback of the scheme on November 30.
However, on the ground, without any official directive coming their way, mills continue to pay their farmers as per the 10 per cent base recovery formula as directed by the MVA government. “We will continue paying as per the old formula,” said a miller, speaking on the condition of anonymity.
Officials of the sugar commissionerate, meanwhile, said the MVA government’s resolution on payments had to be rolled back first and then a new decision had to be presented before the state legislature and ratified by the cabinet. This process, officials said, will take some time.
Till November, 164 mills were in operation in Maharashtra and these crushed 116.63 lakh tonnes of cane. The mills were supposed to pay Rs 2,804.15 crore (excluding harvesting and transportation charges) and have affected payment of Rs 1,586.70 crore. Only 54 mills have cleared 100 per cent of their payment. As the season progresses, the payment would pick up, the sugar commissionerate said.