The Sugar Commissionerate in Pune has cracked down on three sugar mills in Maharashtra, imposing a collective penalty of Rs 14 crore for commencing sugar cane crushing operations before the official start of the season and without obtaining the necessary licence. This action underscores the state government's strict stance on maintaining a level playing field in the sugar industry.
Details of the Penalty and the Mills Involved
The state government had fixed November 1 as the uniform start date for the sugar crushing season. However, it was discovered that several mills began operations earlier. As a result, a penalty of Rs 500 per tonne of cane crushed prematurely was levied.
The highest fine of Rs 11.2 crore was slapped on the Indapur Karmayogi Shankarrao Patil Cooperative Sugar Factory. This mill is operated by Harshwardhan Patil, who is also the president of the National Cooperative Sugar Federation. The Sahakar Shiromani Vasantrao Kale Cooperative Sugar Factory in Pandharpur was fined Rs 2.3 crore, while Raygaon Sugar and Power Ltd in Sangli's Kadegaon received the remaining penalty. The commissioner has directed the mills to pay the fines within a week.
Why a Uniform Start Date is Crucial
Sugar factories are required to apply for a cane-crushing licence from the commissioner's office. These licences are granted only after verifying that a mill has cleared all outstanding dues. These include mandatory contributions like the Rs 10 per tonne levy for farmers affected by recent heavy rains and floods, as well as welfare funds for sugarcane cutters.
The government enforces a uniform start date to ensure parity among all mills. However, some factories start early to prevent farmers from taking their cane to neighbouring states like Karnataka, where mills often begin operations about 10 days before Maharashtra's scheduled date. Notably, last month, three mills in Satara district were also penalised for similar violations.
Legal and Farmer-Centric Implications
Sugar Commissioner Sanjay Kolte, in a statement, explained that mills can appeal the punitive action in court. He cited competition among mills as a primary reason for early crushing. "The penalty is fixed by state govt by law," he stated.
Crushing without a valid licence is illegal and poses a significant risk to farmers. It can lead to violations in paying the mandatory Fair and Remunerative Price (FRP). If mills default on FRP payments, the commissioner's office has the authority to issue recovery orders and even attach sugar stockpiles to ensure farmers receive their dues.
As of the latest data, 191 mills are currently operational in Maharashtra. They have collectively crushed approximately 446 lakh tonnes of sugarcane, producing around 38 lakh tonnes of sugar with an average recovery rate of 8.5%.
