Rattled by seizure threat sugar mills start paying farmers

Kolhapur | Saturday | 2nd February, 2019

Summary:

The factories in two districts still owe Rs 1,207 crore to the farmers. It has threatened to launch an agitation if full payment was not made within a week. The SSS, however, is not ready to accept part payment. KOLHAPUR: Two days after the government took a decision to confiscate sugar from factories for clearing farmers' dues, the mills have fallen in line and started making part payment to the peasants.According to information available with the Kolhapur-based regional office of the sugar commissioner, factories in Kolhapur and Sangli district have deposited more than Rs 2,000 crore in the accounts of farmers.Part payment to the farmers comes in the wake of pressure by Swabhimani Shetkari Sanghatana (SSS) and government's step to confiscate the sugar.Contentious issue of FRP-based full payment, however, continues to be unresolved. Sources in the sugar commissioner's office said that most of the factories have released the payment as Rs 2,300 per tonne, which is around Rs 500 less than fair and remunerative price.Sources in the sugar industry said that factories are in no mood to concede the demand of full payment of FRP, considering the current financial crisis but deposited the payment to pacify the angry farmers ahead of Lok Sabha and assembly elections.Thirty-six sugar factories in Kolhapur and Sangli district have deposited Rs 2,207 crore in the bank accounts of farmers after government ordered confiscation of sugar on Wednesday..