Pune: The sugar industry in Maharashtra is grappling with mounting financial pressure, as pending cane dues have crossed Rs 5,000 crore. Citing the worsening situation, Harshvardhan Patil, president of the National Federation of Cooperative Sugar Factories, has urged the government to take immediate steps to provide relief to the sector, Navrashtra reported.
According to industry representatives, nearly Rs 4,600 crore was pending to sugarcane growers during the current crushing season. The amount has since gone beyond Rs 5,000 crore, deepening concerns among both farmers and mill owners.
Patil has called on the state government to step in with immediate relief measures. He said urgent decisions are needed to stabilise the sector and ensure timely payment to farmers.
A meeting has been convened in Mumbai on Wednesday (March 4) under the chairmanship of Cooperation Minister Balasaheb Patil. Ministers from departments linked to the sugar sector are expected to attend. Industry leaders said they are hoping for decisions that will provide financial support to mills.
One of the key concerns raised by the federation is the recent increase in water charges by the Water Resources Department. The revised rates require mills to pay more per cubic metre of water used. Industry representatives said the hike has added to production costs at a time when factories are already facing losses. They have demanded that the increase be withdrawn.
Data shared by the federation shows that as of February 15, 157 sugar mills in the state owed about Rs 4,601 crore to farmers. With dues now rising further, the federation has sought soft loans for mills to help clear payments.
The industry has also urged the state government to take up with the Centre the issue of increasing the minimum selling price of sugar and granting export subsidies. It has further demanded an early decision on raising ethanol prices and asked that oil companies be directed to procure at least 50 per cent of their ethanol requirement from sugar mills.
Other demands include a subsidy of Rs 300 per tonne for crushed sugarcane and continuation of a Rs 1.50 per unit subsidy for power supplied to the state utility from co-generation projects run by sugar factories.
Industry leaders have also complained about frequent action by the state pollution control board, saying it has created additional difficulties for mills. They expect the matter to be discussed at the upcoming meeting.
In addition, the federation has sought restructuring of bank loans and a special soft loan scheme to ensure working capital for the 2026-27 crushing season.
