Pune: The sugar millers will have to sign individual agreements with farmers instead of common agreements ahead of the start of the crushing season. The state sugar commissioner Shekhar Gaikwad has issued directives to mills in this regard. This will help farmers to get their FRP within the time.
Usually, some of the mills signed a common agreement with the farmers during their annual general meet, which stated that they might not pay full FRP at one go. The millers were using these agreements to delay in paying FRP to farmers. Expecting the same move by sugar mills this time as well, the commissioner has said that these type of agreements will not be valid and millers have to sign agreements with individual farmers.
According to the reports, in such agreements, millers will get a grace period till the stipulated period mentioned in the agreements. And sugar mills in the state will get the crushing license for new season only if they agree to pay the FRP within 14 days.
According to the reports, sugar mills in Maharashtra are yet to pay Rs 589.59 crore arrears to farmers which is 2 per cent of the total arrears of this season. The commissionerate has also extended the last date for obtaining crushing license to give mills more time to prepare for crushing. It is extended to September 30 from the earlier deadline of August 30.
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