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LATEST NEWS UPDATES | Factories refuse pay revised prices to sugarcane farmers by Nikhil Deshmukh

Factories refuse pay revised prices to sugarcane farmers by Nikhil Deshmukh

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published Published on Feb 13, 2011   modified Modified on Feb 13, 2011

Despite the decision taken at a meeting of representatives of farmers, co-op sugar factories and the government, some factories in Ahmednagar district are not paying the revised advances to sugarcane farmers.

At the meeting held in Pune on December 19, it was a decision was taken to revise the advances to Rs 1,800 per tonne in Pune region and Rs 1,750 in Marathwada, Khandesh and Vidarbha.

However, the payment of advances is not made, though almost half of the sugarcane in the state was crushed. The estimated sugarcane availability in the state is 820 lakh tonne and, as on February 9, around 425 lakh tonne was crushed. The total sugar production was 45.62 lakh tonne with a recovery rate of 10.73 per cent.

The meeting in Pune was attended by Harshvardhan Patil (co-operation minister), Vijaysinh Mohite-Patil (chairman of Maharashtra State Co-operative Sugar Factories Federation Ltd), Raju Shetty (MP from Kolhapur and founder of Swabhimani Shetkari Sanghtana), Raghunath Patil (Shetkari Sanghatna leader) and Gopinath Munde (BJP leader). The farmers had demanded advances of Rs 2,200 per tonne.

Patil told TOI: "Some factories in Ahmednagar district have claimed that the fall of sugar prices is making the payment of advances impossible for them. These factories have also pressurised the government to not enforce the decision on all sugar factories."

The factories are aware of the excess availability of sugarcane and the anxiety of farmers to get their entire sugarcane crushed. In such a situation, factories may bargain for lower prices for sugarcane, Patil alleged.

This year, the state is expecting sugarcane availability around 820 lakh tonne, which is more than the requirement. It has prompted the sugar factories to refuse to make the payment, Patil claimed.

Speaking on condition of anonymity, a senior official from the Maharashtra State Co-operative Sugar Factories Federation Ltd said, "If the factories are not implementing the decision taken at the meeting, the government should take action against them."

The Union government has introduced the Fair and Remunerative Price (FRP) formula, which helps in calculating sugarcane prices for farmers. The revised advance payment is more than the FRP. When contacted, cooperation minister Harshvardhan Patil said: "Payment of FRP can be enforced as it is mandatory. But the government cannot force factories to pay revised advances to farmers. The government has sent instructions to the factories to make the payment but some of them are not following it."

According to industry sources, sugar factories have demanded financial assistance from the Maharashtra State Co-operative Bank for payment of revised advances, but it was turned down.


The Times of India, 13 February, 2011, http://timesofindia.indiatimes.com/city/pune/Factories-refuse-pay-revised-prices-to-sugarcane-farmers/articleshow/7484473.cms


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