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However, the Federation of Cooperative Sugar Factories in Maharashtra, a representative body of 200 plus units in the state, met the I-T Chief Commissioner, Pune on Monday with a plea to defer the recovery of arrears and thereby refrain from attachment of assets and sealing of bank account.
Federation managing director Sanjeev Babar told Business Standard “Cooperative factories have expressed their inability to pay 10% of the demand made by the I-T department especially when the sugar price has dipped to Rs 2,960 per quintal as on date against Rs 3,400 per quintal prevailing at the time of commencement of crushing season in November. The difference of Rs 440 per quintal has already impacted their finances adversely. In such a scenario factories won’t be in a position to pay first advance to sugarcane growers,” the official added.
Cooperative factories have also cited that their financial problems would further increase as the state cooperation department has projected a 20-25% dip in the sugar production for want of sugarcane in the current crushing season. As on date state has produced 6.7 million ton of sugar by crushing 60.2 million ton of cane. However, the recovery has fallen to 11.18 compared to previous year's 11.35%
Shetkari Sanghatana, farmers' organization has already opposed I-T department's ongoing move to recover dues and warned that it may lead to a lead to a serious law and order problem.
Managing director of a cooperative sugar factory, who did not want to be identified, recalled that the issue had been repeatedly taken by the state government with the finance ministry and CBDT. “However, the recovery process has not been stayed as the tax authorities have cited the matter being sub judice as cases are pending for order in the Supreme Court. The state government will have to make a fresh appeal seeking stay on the recovery,” he noted.
