Notices issued against 81 sugar mills over pending FRP dues, recovery action initiated against seven: Maharashtra Cooperation Minister
Maharashtra issued notices to 81 sugar mills over delayed FRP payments, with recovery proceedings against seven units owing Rs 232.79 crore. While 98.33% of dues were paid, the state sought higher sugar MSP, soft loans, and improved ethanol support.
The Maharashtra government has issued notices to 81 sugar mills over pending Fair and Remunerative Price (FRP) payments during the 2025-26 sugar season, with recovery proceedings already initiated against seven factories for unpaid dues amounting to Rs 232.79 crore.
The information was disclosed in the Maharashtra Legislative Council by Cooperation Minister Babasaheb Patil in response to a starred question raised by MLC Arun Lad regarding the financial condition of the state’s sugar industry and measures being taken to support the sector.
The minister informed the House that enforcement action was initiated following delays in cane payments by sugar factories.
While notices were issued to 81 mills, Revenue Recovery Certificate (RRC) proceedings have so far been launched against seven units to recover outstanding payments, he said.
At the same time, the government maintained that overall cane payment performance remained largely on track, stating that 98.33 percent of FRP dues for the season had already been paid.
The discussion in the Council also highlighted growing financial pressure within Maharashtra’s sugar sector, where cooperative sugar factories have reportedly sought government support to improve liquidity and manage operational challenges.
According to the government, sugar factories had requested financial assistance of Rs 500 per tonne to help address stress in the industry.
Responding to concerns over the sector’s long-term stability, the minister said the state government has taken up the matter with the Centre.
A meeting led by the Chief Minister was held in New Delhi with the Union Minister for Home and Cooperation, where challenges faced by cooperative sugar factories were presented in detail.
The state has urged the Centre to consider measures including an increase in the Minimum Selling Price (MSP) of sugar, introduction of a soft loan scheme to enable payment of pending FRP dues and enhancement of ethanol pricing and quota allocation for sugar mills.
The government said discussions with the Centre are continuing as efforts focus on protecting farmer payments while improving the financial health of the sugar industry.
The developments indicate increasing scrutiny of payment compliance in Maharashtra’s sugar sector even as policymakers seek broader measures to strengthen the industry’s long-term sustainability.
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Source : ChiniMandi
