The financial distress of Maharashtra’s sugar industry was raised in the state legislature on Friday, with Congress leader Satej Patil urging the government to announce a special financial package for sugar mills across the state.
Raising the issue through a calling attention motion in the Legislative Council, Patil said the sugar sector remains a key pillar of Maharashtra’s rural economy. He noted that the industry contributes nearly Rs 8,000 crore in taxes every year and generates an annual turnover of around Rs 50,000 to Rs 60,000 crore. He said the growth of the sugar industry has played a significant role in improving the economic condition of farmers in rural areas.
However, he pointed out that a decline in sugarcane production and lower sugar recovery has placed mills under severe financial pressure. According to him, the current market price of sugar does not match production costs, making it difficult for factories to repay short-term loans.
Patil also said that while the Fair and Remunerative Price (FRP) for sugarcane has been increased six times, the minimum support price for sugar has not been revised even once. The proposal to fix the minimum sugar price at Rs 42 per kg is still pending with the central government, he added.
He further highlighted that ethanol prices have been reduced and the state’s ethanol quota has been cut, which has added to the difficulties faced by the industry. He urged the government to increase the ethanol allocation to provide relief. He also noted that the Sugar Commissionerate has issued notices to 48 sugar mills over pending FRP dues, but many factories are not financially strong enough to clear the payments.
Patil demanded immediate steps to safeguard the interests of both farmers and sugar factories, including a special financial package, loan restructuring and supportive policy decisions.
Responding to the issue, Cooperation Minister Babasaheb Patil said the revision of the minimum support price falls under the central government’s authority and that the state is following up on the matter.
