31 sugar mills in Maharashtra to lose crushing licence

These sugar mills owe farmers Rs. 328-crore fair and remunerative price (FRP) dues, senior officials of the Maharashtra Sugar Commissionerate have been quoted as saying.

As many as 31 sugar mills in Maharashtra are on the verge of losing their crushing licences for the current season after their failure to clear pending dues for the 2014-15 season, reports a financial newspaper. 

These sugar mills owe farmers Rs. 328-crore fair and remunerative price (FRP) dues, senior officials of the Maharashtra Sugar Commissionerate have been quoted as saying.

These sugar mills are likely to be given a final hearing before their crushing licences are cancelled, the officials told the newspaper.

In addition to the 31 sugar mills, around 14 other sugar mills have not started crushing this season. 

The authorities had issued notices to 51 sugar mills in December for their failure to clear up FRP dues of the last season, according to the business daily.

For the current season, sugar mills have paid INR 2,551 crore out of a total payout of INR 6,197 crore as per the 80:20 FRP formula decided by the Maharashtra chief minister at a meet held in Nagpur last month.