Maharashtra Sugar Mills to Pay Farmers Based on Current Season Recovery, Demand MSP Hike

Maharashtra Sugar Mills to Pay Farmers Based on Current Season Recovery, Demand MSP Hike

September 11, 2025

The colorful drama of Maharashtra’s sugar world just got a fresh twist! Sugar mills in Maharashtra have made a bold decision: farmers will get the Fair and Remunerative Price (FRP) based on the sugar recovered from the cane crushed in the current sugar season only. This ruling came hot on the heels of a key meeting led by Deputy Chief Minister Ajit Pawar, where sugar industry leaders poured their hearts out on payment challenges. Pawar stepped in with stern directions but without any new law—just fresh guidelines from the government. The meeting was a buzzing platform where sugar millers shared their struggles. They explained, "the percentage of recovery changes month to month," making it really tough to pay farmers exactly as per the standard cane extract. They also flagged a serious issue: tumbling finances and soaring costs. Mills can only get loans by putting up their sugar stock as mortgages, and a government-set sugar release quota keeps their hands tied further! This wobbly balance makes timely farmer payments a puzzle. Adding to the confusion, senior cooperative leader and MLA Dilip Walse Patil pointed out that when the matter was brought before the Bombay High Court, the court "did not provide a clear direction on which season’s recovery should be considered while calculating FRP." As he said, "This has led to further confusion for millers as well as farmers." But wait, the sugar saga thickens! Maharashtra’s sugar mills are now fighting a fierce battle for a better deal — an increase in the Minimum Selling Price (MSP) of sugar. The Maharashtra State Co-operative Sugar Factories Federation Limited warns that failing to hike the MSP alongside FRP hikes has already caused many mills to shut down permanently across the state. Why does MSP matter so much? Millers argue that a higher MSP would pump up the value of their sugar stocks. With pricier stocks, they could grab bigger loans from banks, and with this extra money, they’d pay farmers faster and smoother. It’s like a sugar industry lifeline! So, will the government sweeten the deal with a timely MSP hike? The sugar world watches eagerly — because for thousands of farmers and millers in Maharashtra, this is not just business, it’s survival.

Read More at Thehindubusinessline

Tags: Maharashtra sugar mills, Fair and remunerative price, Sugarcane farmers, Ajit pawar, Minimum selling price, Sugar industry,

Camellia Grisby

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