Chhatrapati Sambhajinagar: Facing mounting financial losses, sugar millers in Maharashtra are preparing to meet Chief Minister Devendra Fadnavis to seek urgent relief for the struggling sector, Loksatta reported. Industry representatives say rising costs, stagnant sugar prices and lower returns from ethanol have pushed mills into severe financial stress.
The move follows a recent meeting held in the presence of Cooperation Minister Babasaheb Patil, where mill representatives discussed the deepening crisis in the sugar industry. Leaders including Harshvardhan Patil, Rajesh Tope and Jayprakash Dandegaonkar were present at the meeting.
According to industry representatives, the losses are being driven by the gap between the Fair and Remunerative Price (FRP) paid to farmers and the prevailing sugar price, which currently stands at ₹36 per kilogram. They have demanded an increase in sugar prices to reduce the financial burden on mills.
Jayprakash Dandegaonkar said that in recent seasons, mills have operated for fewer than 110 days on average, affecting overall output and revenue. He added that ethanol, once considered a stable source of income, is no longer yielding the expected returns.
Although Maharashtra’s ethanol production capacity is 345.76 crore litres, the Centre has permitted only 100 lakh litres for supply to oil marketing companies this year, mill owners said. They argue that the limited allocation has reduced potential earnings from ethanol.
Ethanol produced from sugarcane juice is priced at ₹65.61 per litre, while ethanol made from B-heavy and C-heavy molasses is priced at ₹60.73 and ₹57.97 per litre, respectively. In comparison, ethanol derived from maize fetches ₹71.86 per litre. Industry leaders pointed out that these rates have remained unchanged for the past two years. They also said that operating below installed capacity has increased per-unit losses.
Maharashtra has 156 distillery projects, including 79 attached to cooperative sugar mills and 54 linked to private mills, along with 23 standalone distilleries. As of January 30, approval had been granted for the supply of 63.4 crore litres of ethanol, of which 43.68 crore litres has been supplied for blending with petrol.
With both sugar and ethanol operations running below capacity, mill owners say the financial strain on the sector is intensifying. A delegation is now preparing to meet the Chief Minister and later Union Cooperation Minister Amit Shah to seek coordinated action from the state and central governments.
