Mills have not yet paid interest to farmers, shows official data

  • | Monday | 18th February, 2019

The interest is a legal right of the farmers”, he told TOI.After the government swung into action on the bills of farmers, factories have fallen in line by paying the bills. Four sugar factories in Maharashtra have already stopped their crushing operations. The sugar commissioner’s office has reminded private and cooperative sugar mills about their legal commitment through e-mails and telephone calls but the factories are yet to pay the interest. The sugar commissioner’s report says that 38 sugar factories in Kolhapur and Sangli districts had crushed 171 lakh tonne of cane with production of sugar at 207 tonnes. He hinted that the farmers were ready to accept interest in the form of sugar but that the factories should come out clearly on the issue.

Kolhapur: The intensity of the dispute between sugar mills and farmers has subsided, interest on the delayed and part payment to farmers continues to be the bone of contention.Swabhimani Shetkari Sanghatana (SSS) said it will insist on the interest payable to the farmers and even threatened to move court if factories fails to do that.Information available with the sugar commissioner’s office reveals that not a single sugar mill in Sangli or Kolhapur has paid any interest to the farmers even after they were served notices for violation of the Sugarcane Control Act. The sugar commissioner’s office has reminded private and cooperative sugar mills about their legal commitment through e-mails and telephone calls but the factories are yet to pay the interest. The mills have been asked to pay 15% on delayed and part payment to the farmers.A fortnightly report on the status of the sugar industry in Maharashtra, published by the office of the sugar commissioner, says that not a single sugar mill out of the 38 present in Kolhapur and Sangli districts has paid any interest to the farmers.According to rough estimates, the interest amount on the delayed and part payment goes into crores of rupees as the first payment to the farmers was made two months after the crushing season began. Sources in the sugar industry said that mills will pay the interest after the government issued a notification on the hike in price of the minimum statutory price, which was increased by Rs2 in the last week. The factories are also looking for specific directives from the union government on financial subsidy.Ravikant Tupkar of SSS said that they would continue to insist on the interest, as it is the legal right of the farmers. He hinted that the farmers were ready to accept interest in the form of sugar but that the factories should come out clearly on the issue. “We will approach the court if necessary. The interest is a legal right of the farmers”, he told TOI.After the government swung into action on the bills of farmers, factories have fallen in line by paying the bills. The sugar commissioner’s report says that 38 sugar factories in Kolhapur and Sangli districts had crushed 171 lakh tonne of cane with production of sugar at 207 tonnes. The payable amount to farmers has come down to Rs1,146 crore, which is less than the Rs2,000 crore in the last month. Meanwhile, the current crushing season, which began in November last year, is likely to be over by the end of this month. Four sugar factories in Maharashtra have already stopped their crushing operations.

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