Sugar federation seeks govt intervention for higher MSP, Rs 500/quintal subsidy on sugar

Senior NCP leader Dilip Walse Patil said, “The overall sugarcane production in the state this year has declined 15 per cent due to weather conditions leading to low yield of sugarcane. As a result, the crushing season ended in less than 100 days instead of the average 160 days.”

Walse-Patil, a former finance minister, said, “The early closure of mills has led to an estimated loss of nearly Rs 3,300 crore for the sugar industry.  Whereas, Rs 4,315 crore in Fair and Remunerative Price (FRP) payments to farmers are still pending.”

According to the data furnished by the state sugar cooperative department, “In 2024-25, total sugar production stood at 791.15 lakh quintals from 853.96 lakh metric tonne cane crushed.” This was a sharp decline from 2023-24 season with 1101.7 lakh quintal sugar production from 1076.18 lakh metric tonne cane crushed.

What has further compounded the crisis for the sugar industry on the domestic front is the possibility of drought in the coming kharif season where sugar cane cultivation will become a causality.

Sources in the agriculture and cooperation sector said, “If El Nino leads to drought in Maharashtra, the government will have to take a decision to dissuade sugar cane cultivation as it is a high water intensive crop. Instead, agriculture research universities are being roped in to help farmers to adopt crop diversification. The emphasis will be on millets and pulses which are less water consuming especially in drought conditions.”

In the current season, the state’s overall sugar recovery rate stands at 9.45%, lower than the 10.16% rate achieved at this time last season.”

The sugar cultivation area in 2025-26 increased to 16.06 lakh hectares from the previous year 2024-25 at 13.67 lakh hectares. In 2023-24, the area under sugar cultivation was 14.37 lakh hectares.