FRP payment: MSCSFF asks sugar mills to enter into pacts with sugarcane farmers


The Maharashtra State Cooperative Sugar Factories Federation (MSCSFF) has suggested the sugar mills to enter into agreements with farmers offering a four-month window from the receipt of cane for paying fair and remunerative price (FRP) dues.

MSCSFF believes this will help give mills time to gather the funds and also on-time payment to cane growers.

Sugar mills claim that they are sitting with surplus sugar and there is a delay in the export policy announcement, therefore they are suffering from the financial crisis.

According to the news report published in, Sanjay Khatal, MD, MSCSFF, said, “Liquidity is going to be an issue with mills, which are already facing sluggish sugar sales and financial problems. Sugar prices are also below MSP on subdued demand. The federation has advised mills to enter into agreements on FRP payments with farmers at the start of the season itself to avoid payment issues. It is, however, not known how many mills have entered into such agreements.”


Please enter your comment!
Please enter your name here