Financial Express reports the Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) has urged sugar mills to enter into agreements with farmers offering a four-month window from the receipt of cane for paying fair and remunerative prices (FRP).
Sources close to the federation said this would not only give mills a breathing space to raise funds, but also allow farmers to get paid in time.
Sanjay Khatal, MD, MSCSFF, said the insistence by some farmer bodies for one-time payment of FRP could create problems for mills as their financial situation is not satisfactory.
It is said the total payable FRP was around Rs 4148.33 crore and sugar mills have made 52.28% of the payment. FRP arrears to farmers are now Rs 1,979.56 crore.
