State mills have yet to calculate final duties with new rules, payment to sugar cane growers could be delayed

Despite a bumper season and a bullish sugar market, the state’s cane growers will have to wait longer for their final expenses to be settled. Technical difficulties in calculating final fees will cause mills to take longer than the prescribed 15 days after closing their operations to settle the final payment to farmers.

Starting this season, the state government made a major change in the payment schedule for mills. Thus, the mills will pay the first payment within 15 days of the purchase of the rod, and the final payment will be made after the calculation of the final recovery within 15 days of the closing of the season.

The final recovery is to be calculated after taking into account the ethanol produced from heavy molasses B or directly from cane juice. The Pune-based Vasantdada Sugar Institute (VSI) is the authority responsible for calculating the final payback, based on which farmers will receive the final payment.

The government resolution ordered final calculations and payment to be made within 15 days of the factories closing, but none of the factories have done so so far. The Office of the Sugar Commissioner has received final calculations for 60 mills, most of which are located in the Kolhapur and Sangli regions.

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The production of ethanol from heavy B molasses results in less sugar production compared to ethanol produced from C molasses. will be done. This is the first year that this clause has been introduced by the government, but most factories have not respected it.

In addition to the recovery, the final calculation of the harvest and transport allowance must also be finalized, after which the final payment will be made. Till May 15, the state reported crushing of 1,272.43 lakh tons of cane, for which mills had to pay farmers Rs 28,763.84 crore (net of harvesting and transportation costs), of which factories have paid Rs 27,545.97 crore so far.

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Elaine R. Knight