Maharashtra to Link Sugarcane FRP with Sugar Recovery Rate

11-Sep-2025 12:00 PM

Pune. Sugar mills in Maharashtra have decided to pay the fair and remunerative price (FRP) of sugarcane to farmers on the basis of the average recovery rate of sugar from sugarcane crushed during a particular marketing season. It is known that the FRP of sugarcane is determined by the Central Government.

A decision to this effect was taken in a recent meeting between the Deputy Chief Minister of Maharashtra and representatives of the sugar industry.

The Deputy Chief Minister has issued necessary guidelines in this regard, but the Maharashtra government has not yet issued an official ordinance, rather only guidelines have been issued.

This meeting was organized by the state government, the purpose of which was to discuss with the sugar millers about the payment of FRP of sugarcane to the farmers.

The Deputy Chief Minister said that sugar millers face many serious challenges in strictly paying FRP as per the sugarcane contract because there is a change in the recovery rate of sugar from sugarcane every month.

In the meeting, the millers also raised the issue of their chairmanship in making timely payments. Millers said that their expenses are constantly increasing and they get loans from banks and financial institutions only after pledging their sugar stock.

Apart from this, millers are compelled to compulsorily sell sugar as per the free sale quota declared by the Central Government for sale in the domestic market every month.

It is worth mentioning that when this matter reached the Bombay High Court, the court also did not give any clear direction on which season's recovery rate should be made the basis for sugarcane FRP.

This has created a situation of confusion and both sugar millers and sugarcane farmers remain in dilemma.