Sugar mills in Maharashtra have paid 98% of the fair and remunerative price dues to the farmers. The dues that have been paid account for the crushing season of 2019-20. Mills were obliged to make a payment of Rs 13,635 crore in the form of fair and remunerative price dues out of which they have already paid 98% by June 30 2020. The total FRP payments made by the Mills amount to Rs. 13,425.85 crore. even after this payment farmer dues totalling to Rs. 209.15 crore are still pending for the current season.
144 sugar mills produced 616.79 lakh quintals of sugar by crushing almost 550.13 ton of cane as per the data released by the Sugar Commissionerate. Previous year, 195 sugar mill paid Rs. 22,137.15 crore as FRP dues to farmers and crushed nearly 952.11 lakh tonne of cane.
Every year this fair and remunerative prices are fixed by the government well in advance. This prices at as a benchmark and no sugar mills can purchase canes from farmers below these prices. Recoveries of sugar in the mills in the west of Maharashtra are generally between 11 to 13 %. The state’s net cane area has increased nearly 43% in 2020-21. This increase is largely because of of the above normal monsoon in 2019 and normal rainfall in the first three months of 2020 as per the data reported by the Indian sugar Mills association or ISMA.