Pune: With the sugarcane crushing season in Maharashtra nearing its end, State Sugar Commissioner Dr. Sanjay Kolte has directed sugar mills to ensure timely payment of the Fair and Remunerative Price (FRP) to farmers. He has warned that mills will be required to pay 15% interest, as per rules, on any delay in FRP payments for the 2025-26 season, Pudhari reported.
The Sugar Commissionerate has launched inspections of mills across the state to monitor pending payments and ensure that farmers receive their cane dues without further delay.
During hearings held last week, Kolte made it clear that strict action would be taken against mills failing to clear dues on time. Hearings were conducted on February 17 and 18 for 45 sugar mills that have paid less than 60% of the FRP owed to farmers.
Kolte said that after notices were issued to defaulting mills asking them to explain pending payments, some mills cleared part of their outstanding dues. He added that the Commissionerate’s efforts are focused on ensuring that farmers receive their payments promptly.
Mill representatives, however, told authorities that the existing sugar sales quota does not allow them to clear the entire FRP amount. They said the Centre has now approved an increased sales quota and that payments will be made from the proceeds of additional sugar sales.
They also pointed out that although electricity has been purchased by the state distribution company under co-generation agreements, payments have not yet been released, creating financial strain. Some mill owners said they may take bank loans to clear the remaining FRP dues.
The sugarcane crushing season in Maharashtra is expected to conclude by March 15.
