Chhatrapati Sambhajinagar: Cooperative sugar factories in Maharashtra have asked the state government to provide financial support of Rs 500 per tonne of sugarcane to help them cover the gap in the Fair and Remunerative Price (FRP) and clear pending payments.
An office-bearer of the Maharashtra Cooperative Sugar Factories Federation said the state has more than 100 cooperative sugar mills, and the sector is facing a large amount of unpaid dues. The total pending payments linked to the industry have crossed Rs 8,000 crore. Out of this, about Rs 4,900 crore relates to unpaid FRP to farmers, according to the Office of the Sugar Commissioner, Hindustan Times reported.
He said the FRP for sugarcane has been fixed at Rs 3,550 per tonne, while banks provide loans of only Rs 2,440 per tonne to sugar factories. This creates a gap of Rs 1,160 per tonne. The official added that the unpaid FRP amount in the state has already reached Rs 4,900 crore. When payments for harvesting and transportation are included, the total financial pressure on mills increases to around Rs 8,000–9,000 crore.
The federation also pointed out that some other states have already announced support for their sugar industries. The government of Punjab has declared financial assistance of Rs 685 per tonne for sugarcane, while Karnataka has also taken steps to support its sugar mills.
The official said cooperative sugar factories in Maharashtra have given priority to paying sugarcane farmers. However, payments related to harvesting work and transport services are still pending.
He also said the ongoing global conflict has created transport-related problems for exports, which may limit overseas sales. Since sugar prices in the domestic market are currently favourable, mills are focusing on selling their produce within the country.
Meanwhile, the federation has approached the state cooperation department and held discussions on the issue. It has submitted several demands, including financial support of Rs 500 per tonne of sugarcane to bridge the FRP gap and help clear pending dues.
The federation has also suggested forming a committee comprising the sugar and agriculture commissioners to ensure the smooth functioning of harvesting operations. The department has written to Chief Minister Devendra Fadnavis seeking time to discuss the problems faced by sugar mills, the official said.
