Maharashtra Sugar Mills Owe Farmers ₹175 Crore in FRP Payments

As the new sugarcane crushing season approaches, a report from the Sugar Commissionerate has revealed that 25 sugar mills in Maharashtra have not yet paid a total of ₹175 crore in Fair and Remunerative Price (FRP) dues to farmers. This information was disclosed in a report released on October 1, 2026, highlighting ongoing financial obligations within the state's sugar industry.

The report indicates that out of 210 sugar mills that participated in the previous crushing season, 185 have successfully cleared their FRP dues, achieving a 100% payment rate. The total sugarcane crushed during the season amounted to 1,045.63 lakh tonnes, with mills having a gross FRP liability of ₹40,446 crore, which includes harvesting and transportation charges.

According to the data, mills have made payments totaling ₹41,730 crore, but when excluding the harvesting and transportation component, the actual FRP paid to farmers stands at ₹40,271 crore. This means that the overall payment level for FRP in the state is approximately 99.57%. While 185 mills have fulfilled their payment obligations, 21 others have paid between 80% and 99.99%, leaving farmers associated with these mills awaiting the remaining amounts.

The situation is particularly pressing as the sugar sector prepares for the upcoming 2026-27 crushing season. The outstanding payments are a significant concern for sugarcane growers, who rely on timely payments for their livelihoods. The report underscores the need for these mills to address their financial commitments to ensure a smooth transition into the new season.

Looking ahead, stakeholders in the sugar industry will be closely monitoring the actions of the remaining mills to ensure that outstanding FRP payments are resolved promptly. The resolution of these dues will be crucial for maintaining farmer relations and ensuring the sustainability of the sugarcane sector in Maharashtra.