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Sugarcane farmers await ₹1,432 crore dues; the government takes strict action against defaulting mills to ensure timely payments.
By Robin Kumar Attri
Farmers are owed ₹1,432 crore in FRP dues.
105 out of 200 mills cleared full payments.
Action taken against 15 defaulting sugar mills
The government may recover dues via the sugar stock auction.
Mills are trapped in the debt cycle, facing a cash shortage.
There’s positive news for sugarcane farmers across Maharashtra. The state government has stepped in to help farmers recover their pending dues from sugar mills. Currently, sugarcane farmers are owed ₹1,432 crore in Fair and Remunerative Price (FRP) payments, and the Sugar Commissioner's Office is taking strict measures to ensure timely payments.
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The Maharashtra government has prepared a plan to help farmers receive their pending dues. The Sugar Commissioner’s Office is taking action against sugar mills that have not cleared payments. If necessary, the department is ready to recover dues by auctioning the sugar stock of defaulting mills.
So far, action has been taken against 15 sugar mills that failed to pay farmers. At the same time, 105 mills have cleared 100% of their dues. This initiative is seen as a farmer-friendly move by the state government.
The sugarcane crushing season has ended in Maharashtra. As per the report till April 1, sugar mills had to pay a total of ₹28,231 crore to farmers as FRP. Out of this, ₹26,799 crore has been paid, and ₹1,432 crore is still pending.
Farmer organizations have met the Sugar Commissioner, demanding quick payments and warning of protests if their demands are not met.
Under the law, sugar mills are required to pay FRP within 14 days of purchasing sugarcane. If they fail, the Sugar Commissioner’s Office can issue a Revenue Recovery Certificate (RRC). This allows the outstanding dues to be recovered as revenue arrears through the auction of sugar stock.
Despite high sugar prices, many mills are facing operational losses due to a lower crushing season. Still, the law requires full payment to farmers on time.
Out of 200 sugar mills that crushed cane this season:
105 mills have paid 100% dues
50 mills have paid 80–99.99%
30 mills have paid 60–79.99%
14 mills have paid less than 40%
The Sugar Commissioner’s Office is taking necessary actions against mills that have not paid farmers fully.
There’s still uncertainty about sugar production estimates for the next 2025–26 season. The National Federation of Cooperative Sugar Factories estimates production at 4.4 million tonnes, while the Indian Sugar and Bio Energy Manufacturers Association estimates 5.4 million tonnes.
The central government has allowed the export of 1 million tonnes of sugar, out of which 6 lakh tonnes have already been traded. Meanwhile, global sugar prices have seen a slight drop due to reduced demand, according to the FAO March index, which fell by 1.6 points.
Sugar industry expert Vijay Autade explained that many mills are unable to pay FRP due to a broken financial structure. Here's why:
Mills raise capital by pledging sugar stock to banks.
Banks provide loans up to 85% of the stock value, priced at ₹3,500 per quintal.
After deductions like security deposits, mills receive less cash.
Many mills are also repaying old loans taken to pay previous FRP dues.
This cycle has trapped mills in continuous debt, making it difficult to pay farmers on time every season.
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The Maharashtra government and the Sugar Commissioner’s Office are working to secure payments for sugarcane farmers. While over ₹1,400 crore is still pending, firm actions like issuing RRCs and auctioning sugar stock are expected to bring relief to thousands of farmers soon.
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