Maha has no funds even to pay salaries: Chandrakant Patil

Blames Cong-NCP for empty state coffers

Maharashtra cooperative minister Chandrakant Patil on Monday admitted that the state government is facing a shortage of funds and it is finding it difficult to even pay salaries to its employees.

Speaking in the context of the current sugar crisis in the state, Mr Patil ruled out the state government’s intervention in it. A majority of sugar mills in Maharashtra have expressed inability to pay the Fair and Remunerative Price (FRP). They have demanded the government’s help to pay FRP to sugarcane farmers. Mr Patil said that the government’s funds have depleted because of the misrule of Congress-NCP and it is not in a position to provide funds to sugar mills. However, he assured that the state government would ensure that farmers get FRP.

Speaking at a function in Sangli on Sunday, Mr Patil said, “If sugar prices have fallen by over '900 per quintal, then it will not be possible for the sugar factories to pay as per FRP to farmers. The state government definitely does not have money to fund the gap between market prices and FRP. The Congress-NCP government emptied the state’s coffers and left behind a debt of '3.84 lakh crore. This month we do not have money to pay salaries to state government employees. From where will government get '2,000 crore to help sugar factories ”

FRP has been fixed by the government in order to protect the farmers from exploitation. Commission for agriculture costs and prices has recommended FRP for sugarcane for the sugar season 2014-15 to be '220 per quintal at 9.5 per cent recovery of sugar from sugarcane.

With every increase in recovery by 0.1 percentage point, the FRP will increase by Rs 2.32 per quintal. However, a majority of sugar factories in the state have expressed their inability to pay FRP to farmers because of falling sugar prices and have sought government’s help.

Though Mr Patil said that the government cannot help factories financially, he agreed with the situation created by falling prices. “Prices of sugar have come down in the global market. Therefore option of exporting sugar in order to increase sugar prices in the domestic market is also not possible as they are no takers even in the international market at the higher prices,” he said.

Last month, the state government had issued notices to 117 factories for non-payment of FRP. SSS, BJP’s alliance partner, held demonstrations in Pune and Sangli on Monday in protest of non-payment of FRP to farmers. The protests became violent at both the places and protesters attacked government offices and vehicles.