Maha govt issues directives for fixing cane prices as per Revenue Sharing Formula

The Maharashtra government Friday asked for streamlining the process of fixing sugarcane prices as per the Revenue Sharing Formula (RSF) for sugar factories which have completed cane crushing. The directives were given by Chief Secretary D K Jain during a meeting of the Cane Price Regulatory Board with representatives of farmers and sugar cooperatives here, an official release stated Friday. The meeting approved cane prices for 2017-18 fixed as per the RSF, it added.

Out of 181 sugar units, prices of 157 were fixed as per RSF, and out of these, 17 factories have given higher RSF money than FRP (Fair and Remunerative Price) to farmers. The board meeting also gave approval to rates of 140 sugar factories whose RSF rate was less than the FRP, it said. Jain asked for streamlining the process of fixing the prices as per RSF, the release informed. Farmers' representatives said some factories show more expenditure for cane crushing and transportation. In reply, Jain asked the Sugar Commissionerate to check the rates.

Farmer representatives also demanded that the minimum sale price of sugar be increased to Rs 34 per kilogram. This year 185 sugar factories took up crushing of 426.84 lakh metric tonne sugarcane. The total FRP amount for the crushing of sugarcane is Rs 10,487 crore. Out of this, Rs 5,166 crore has been given while arrears of Rs 5,320 crore are pending on the part of 174 sugar factories. Eleven sugar factories have given farmers 100 per cent prices as per FRP.

(With inputs from agencies.)