Maharashtra mills owe sugarcane farmers Rs 119 crore in FRP arrears as new crushing season begins
Maharashtra sugar mills still owe farmers ₹119 crore in FRP payments for the 2025–26 season, despite clearing 99.71% of dues. Of 210 factories, 189 settled payments fully, while 21 remain in arrears. Recovery proceedings have begun, with Revenue Recovery Certificates issued against 20 factories.
As Maharashtra’s new crushing season has begun, sugar mills still owe farmers Rs 119 crore in Fair and Remunerative Price (FRP) payments for the 2025-26 season, with 21 factories yet to clear their dues, according to the fortnightly report released by the Maharashtra Sugar Commissionerate.
The report, submitted to the Centre’s Directorate of Sugar, stated that 189 out of 210 sugar factories that participated in the crushing season had cleared 100% of their FRP payments. Another 17 mills had paid between 80% and 99.99% of their dues, while three mills had settled between 60% and 79.99%. One factory had paid less than 60%.
Consequently, 21 sugar factories had outstanding FRP dues as of October 15. The Commissionerate said recovery proceedings had been initiated, with Revenue Recovery Certificates (RRCs) issued against 20 factories.
Maharashtra’s 210 sugar factories crushed 1,045.63 lakh metric tonnes (LMT) of sugarcane during the 2025-26 season. The total gross FRP payable, including harvesting and transportation (H&T) charges, stood at Rs 40,446 crore.
The report recorded actual FRP payments of Rs 40,327 crore, leaving Rs 119 crore unpaid. This represents a payment clearance rate of 99.71%.
The Commissionerate clarified that some sugar mills had paid farmers more than the basic FRP, explaining why the reported payment figures, including H&T charges, exceeded the total gross FRP payable. The report showed that mills reported paid Rs 41,854 crore, equivalent to 103.48% of the gross FRP payable. Excluding H&T charges, the gross FRP payable was Rs 30,278 crore, while reported payments stood at Rs 31,685 crore, or 104.65%.
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Source : ChiniMandi
