Maharashtra: Rs 10 cr bank guarantee mandated for leased sugar mills to ensure FRP payments
Mumbai (PTI): A bank guarantee of Rs 10 crore has been mandated for sugar mills in Maharashtra operating on a lease or partnership basis to ensure the timely payment of Fair and Remunerative Price (FRP) to sugarcane farmers, officials said on Monday.
The state Cooperation Department's decision aims to secure FRP dues during the crushing season, though concerns have been raised that the amount may be inadequate given the scale of operations of most such mills.
According to officials, many cooperative sugar factories are financially stressed and have been given on lease or partnership under norms based on provisions of the securitisation law. While eligibility criteria for operating such mills had been laid down earlier, there was no clear mechanism to ensure timely FRP payments.
Under the new decision, at the time of entering into lease or partnership agreements and while applying for crushing licences, the company or agency taking over the mill or another sugar factory will have to furnish a minimum bank guarantee of Rs 10 crore in the name of the Sugar Commissioner.
If FRP is not paid on time during the crushing season, the dues of cane suppliers, along with interest for the delayed period, will be recovered from the bank guarantee. Any balance amount remaining after settlement of FRP dues will be returned after the end of the crushing season upon submission of a no-dues certificate, officials said.
They added that district collectors have been empowered to invoke the bank guarantee to ensure payment of FRP.
The order also provides that in case of default, coercive action cannot be taken against the immovable and movable assets of the original cooperative sugar factory. Instead, recovery proceedings, including attachment, may be initiated against the movable and immovable assets of the operating agency or company, as well as against sugar, molasses, bagasse and other by-products produced by the mill.
Commenting on the decision, farmers' leader Raju Shetti said the move was welcome but the guarantee amount should be much higher.
"Most cooperative sugar factories in the state are financially sick and have been given on lease. Their crushing capacity ranges between 3,000 and 5,000 tonnes per day. They have to pay at least Rs 100 to Rs 150 crore as FRP. In such a scenario, a Rs 10 crore bank guarantee is too low and should be increased," Shetti said.
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Oppn, X users flag concerns over US envoy Sergio Gor’s visit to Army’s western command
New Delhi: A visit by the US Ambassador to India, Sergio Gor, to Chandigarh on Monday has triggered sharp criticism from opposition leaders and social media users, raising questions about national security and foreign policy.
On X, Ambassador Gor announced his visit, writing, “Just landed in Chandigarh. Looking forward to visiting the Western Command of the Indian Army.”
Just landed in Chandigarh. Looking forward to visiting the Western Command of the Indian Army
— Ambassador Sergio Gor (@USAmbIndia) February 16, 2026
Soon after, opposition voices questioned the broader implications of the visit. Congress Kerala, in a post, commented, “Why so much panic? We’ve already seen Pakistan's ISI getting access to Pathankot Airbase with this government's blessings. Didn't they say then ‘Modi ne kiya ho to kuch soch samajh kar kiya hoga?’ Compared to that, this is very small.”
Why so much panic? We’ve already seen Pakistan's ISI getting access to Pathankot Airbase with this government's blessings.
— Congress Kerala (@INCKerala) February 16, 2026
Didn't they say then "Modi ne kiya ho to kuch soch samajh kar kiya hoga?"
Compared to that, this is very small. pic.twitter.com/gNNuAGQBPC
Shiv Sena (UBT) leader Priyanka Chaturvedi also weighed in, writing, “Since India’s national strategic interests are now tied to what US wants India to do, this visit seems to sync with that.”
She further added, “India’s history will remember the de-escalation announcement between India and Pak was announced on social media by the US President before Indians got to know from their own government. US Ambassador is doing the job for his nation, who is doing for us? The answer is blowing in the wind.”
Since India’s national strategic interests are now tied to what US wants India to do, this visit seems to sync with that. India’s history will remember the de-escalation announcement between India and Pak was announced on social media by the US President before Indians got to… pic.twitter.com/rYMq5NhJHA
— Priyanka Chaturvedi🇮🇳 (@priyankac19) February 16, 2026
The visit comes against the backdrop of the growing US-India defence partnership.
Writer and political analyst @rajuparulekar commented on ‘X’, “East India Company is back!”
“Is it allowed for an ambassador to visit any army unit in india?” asked another user.
Several X users expressed concerns over the appropriateness of the visit.
One asked, “Is it allowed for an ambassador to visit any army unit in India?” Another wrote, “Why an ambassador visiting our army places? To talk to Chandigarh lobby for F-35?”
Why an ambassador visiting our army places ? To talk to chandigarh lobby for f-35 ??
— Rohan Sagar (@RohanSagar03) February 16, 2026
“We have completely sold Indian sovereignty. Rothschild the evil Bankers will now control NSE. Modi sold Bharat Mata to Trump . And now American imperialist is visiting our army command . Scary,” wrote another user.
“The Indian Army isn’t part of geopolitics, so why is he interested in visiting there?,” opined another.
The Indian Army isn’t part of geopolitics, so why is he interested in visiting there?
— Aditya Pratap Singh (@Adi_IIMCIAN) February 16, 2026
On Sunday, Gor welcomed Admiral Samuel Paparo, Commander of the United States Indo-Pacific Command (INDOPACOM), highlighting efforts to expand the growing US-India defence partnership.
In a post on X, Gor wrote, “Delighted to have @INDOPACOM Commander Admiral Samuel Paparo in India to expand the U.S.-India defense partnership. Now is the time to strengthen vital cooperation between our two nations.”
On Monday, Admiral Samuel J. Paparo Jr visited the headquarters of India’s Western Army Command along with the American envoy Sergio Gor. The delegation was briefed on the formation’s capabilities, its past operations, and future plans.
The American delegation also visited Bengaluru, where they met three start-ups, two in the space sector and one in defence, and participated in an Indo-US conference.
