Pune: Fifteen sugar mills in Maharashtra face action after failing to pay farmers for sugarcane purchased during the current crushing season. A report from the sugar commissioner’s office show that of the Rs 28,231 crore owed to farmers as of April 1, mills have cleared Rs 26,799 crore, leaving Rs 1,432 crore in unpaid dues, reported The Indian Express.
As the crushing season nears its end, officials are focusing on ensuring timely payment. Sugar mills are required to pay farmers within 14 days of purchasing their cane. If they fail to do so, the sugar commissioner’s office can issue revenue recovery certificates (RRCs), which allow authorities to recover the unpaid amounts by auctioning sugar stocks.
Although sugar prices have mostly remained high, many mills have struggled financially due to operating below their full capacity. This has led to mounting losses. Out of the 200 mills that participated this season, 105 have paid their dues in full. Fifty mills have cleared between 80% and 99.99% of payments, 30 mills have paid between 60% and 79.99%, and 14 mills have paid less than 40% of what they owe.
