8 sugar factories default on FRP payment in Kolhapur in season 2024-25: Minister informs Lok Sabha
During Sugar Season 2024-25, 23 sugar factories operated in Kolhapur district; 15 cleared Fair and Remunerative Price dues, while 8 defaulted on Rs. 38.81 crore. Maharashtra issued recovery notices and hearings, with payment deadlines set. The Centre stated no change in FRP policy is planned, deeming current regulations adequate.
During the Sugar Season (SS) 2024-25, a total of 23 sugar factories particiapted in crushing operations in the Kolhapur district, of which only 15 have fully paid the Fair and Remunerative Price (FRP) to farmers, while the remaining 8 have defaulted on payments totaling Rs. 38.81 crore.
Union Minister of State for Consumer Affairs, Food & Public Distribution, Nimuben Bambhaniya, informed the Lok Sabha that the Maharashtra government has reported that during the SS 2022-23 and 2023-24, all the sugar factories in Kolhapur district have paid the FRP to farmers within time limit. During SS 2024-25, 23 sugar factories have undertaken the crushing in the Kolhapur district, out of which 15 sugar factories have fully paid the FRP amount and 08 sugar factories have defaulted on the FRP payment amounting to Rs. 38.81 crore.
The powers have been delegated and vested with the State Governments for monitoring the cane price payment position of sugar factories on periodical basis and in case of delay in payments, suitable action is taken by them. If the FRP amount is not paid or is delayed, action under section 3(8) of the Sugarcane (Control) Order, 1966, can be initiated against the concerned factory by issuing a Revenue Recovery Certificate (RRC) by the State Government.
The State Government of Maharashtra has informed that for defaulting sugar factories RRC notice are issued for assessing the reasons for default. A hearing has been held before the Sugar Commissioner, Government of Maharashtra on 8th August 2025 for above 08 sugar factories. As per their written demand, a deadline has been given to them to pay the arrears of FRP and the next hearing has been fixed on 9th September 2025.
While replying to a question by MP Dhairyasheel Mane on whether the Government is considering making the FRP Policy Regulations based on contemporary times, she stated, “No such policy is currently under consideration. The present policy is sufficient to regulate the timely payment of FRP within stipulated time period.”
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Source : Chinimandi
