Maharashtra got benefit of Rs 8,000 crore after Centre’s decision to exempt tax on amount above sugarcane FRP: Fadnavis

On Sunday, Deputy CM Devendra Fadnavis stated that Maharashtra has benefited the most from the cooperative sector reforms implemented by the Centre.

He highlighted that the Centre’s decision to exempt the tax on amount above FRP (Fair & Remunerative Price) paid to sugarcane farmers has seen the state getting maximum benefit worth Rs 8,000 crore.

While it is mandatory for sugar mills to pay FRP to sugarcane farmers, mills that paid higher amounts were previously subject to taxation, leading to farmers missing out on higher payments.

Over the years, the cumulative tax amount of Rs 8,000 crore remained unpaid despite repeated requests from a delegation led by the sugar federation. However, after Amit Shah assumed the role of Minister for Cooperation, he not only addressed the issue by exempting tax on funds paid beyond FRP but also resolved the matter retrospectively.


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