Maharashtra to Set Up State-Level Committee for Financial Aid to Sugar Industry
Mumbai: Maharashtra Chief Minister Devendra Fadnavis on Tuesday directed the Chief Secretary to constitute a state-level committee to examine issues related to financial assistance for the sugar industry and submit an immediate report.
The committee will comprise secretaries from the Cooperation, Agriculture and Finance departments, the Sugar Commissioner, the Industry Secretary, and the Managing Director of the State Cooperative Bank.
The directions were issued during a meeting held at the Vidhan Bhavan to discuss challenges faced by the sugar sector. The committee will undertake a comprehensive study of the difficulties faced by sugar factories, the nature of these problems, possible remedial measures, and alternative arrangements, and submit its report at the earliest.
“This report will help the state government formulate a financial package for the sugar industry,” the Chief Minister said.
Considering the financial stress faced by sugar mills in the state, he also directed officials to prepare an action plan to provide feasible financial assistance ahead of the upcoming crushing season.
He further emphasised the need to establish a state-level regulatory framework for large jaggery and khandsari projects, directing that a draft proposal be submitted within the next 15 days.
“The state government is committed to strengthening the sugar industry and resolving the hurdles it faces,” Devendra Fadnavis added.
He also stated that the state government would seek a meeting with the Central Government, along with representatives of the sugar factory federation, to secure necessary support and concessions.
The government will make all possible efforts at both the state and central levels to address the challenges faced by sugar factories, he noted.
Meanwhile, sugar industry representatives including Harshwardhan Patil, Dilip Walse Patil, Jayant Patil, Rajesh Tope and Abhimanyu Pawar demanded that the state government provide direct financial assistance of ₹500 per tonne to help mills pay the Fair and Remunerative Price (FRP), similar to the support extended in Punjab and Karnataka.
They also urged the government to facilitate loans from the open market with interest subsidies to clear pending dues. Additionally, they sought long-term restructuring of all loans as of March 31, 2026, with a two-year moratorium and a repayment period of 10 to 12 years.
The representatives further requested that the Chief Minister lead a delegation to meet Prime Minister Narendra Modi and Union Home and Cooperation Minister Amit Shah to press for increasing the sugar Minimum Selling Price (MSP) to ₹4,100 per quintal, raising ethanol prices, releasing ₹69 crore in pending interest subsidies for 21 ethanol projects, and directing banks to extend loans despite lower margins.
The meeting, chaired by Chief Minister Devendra Fadnavis, was attended by Deputy Chief Minister Sunetra Pawar, Ministers Radhakrishna Vikhe Patil, Shivendrasinh Raje Bhonsle, Babasaheb Patil, along with MLAs and senior officials.
