Action Likely Against 15 Sugar Mills in Maharashtra for Cane Dues

11-Apr-2025 06:07 PM

Pune: Authorities may soon initiate action against 15 sugar mills in Maharashtra for failing to pay farmers for sugarcane purchased during the 2024-25 crushing season.

According to the Sugar Commissioner’s Office, sugarcane worth ₹28,231 crore was procured, out of which ₹26,799 crore has been paid, leaving ₹1,432 crore still outstanding.

As the crushing season nears its end, officials are intensifying efforts to ensure timely payments. By law, mills must pay farmers within 14 days of procurement.

Failure to do so can lead to the issuance of a Revenue Recovery Certificate (RRC), enabling authorities to recover dues by auctioning sugar stock, potentially resulting in financial losses for mills.

Despite strong sugar prices, several mills are financially stressed due to a severe cane shortage, which limited their crushing capacity.

Of the 200 sugar mills that operated this season, 105 mills have cleared 100% dues, 50 mills have paid 80–100%, and 30 mills have paid 60–80%. However, 14 mills have settled less than 40% of their dues.

Authorities are putting pressure on these mills to clear payments promptly, and action may follow under existing regulations if delays continue.