Maharashtra Sugar Mills Seek Government Aid to Bridge Financial Gap

Cooperative sugar mills in Maharashtra are urging the state government for Rs 500 per tonne aid to bridge the gap in Fair and Remunerative Price and clear the workers' dues. Pending dues have reached Rs 8,000 crore, highlighting financial challenges amid domestic market focus.

Cooperative sugar mills across Maharashtra are appealing to the state government for financial aid of Rs 500 per tonne. The move aims to address the pressing gap between the Fair and Remunerative Price (FRP) and current revenues, as operators struggle with mounting pending dues.

With over 100 cooperative sugar mills in the region, officials revealed that dues have surpassed Rs 8,000 crore, while the FRP pendency alone amounts to Rs 4,900 crore. The Rs 3,550 per tonne FRP contrasts starkly with the Rs 2,440 per tonne received from banks, creating a substantial Rs 1,160 gap.

Compared to initiatives in Punjab and Karnataka, Maharashtra's sugar industry urges local government support. While global exports face transport challenges, domestic opportunities remain lucrative, making local market sales a priority. The federation is actively engaging with the government to address these financial woes, including setting up a committee for efficient operations.

(With inputs from agencies.)