Cooperative Sugar Mills in Maharashtra to Receive Soft Loans

16-Sep-2026 04:27 PM

Mumbai: The Maharashtra government has approved soft loans amounting to ₹750 crore to strengthen the financial position of the state's cooperative sugar mills. Sugarcane crushing operations in the state are set to commence in the coming weeks. The state cabinet approved the proposal to this effect during its meeting on September 15.

These soft loans will assist Maharashtra's cooperative sugar mills in clearing outstanding sugarcane price dues for the 2025-26 season and in conducting their operations smoothly during the 2026-27 season. Sugar mills currently face substantial outstanding dues owed to sugarcane growers.

According to official sources, sugar mills in Maharashtra are required to pay the Fair and Remunerative Price (FRP) for sugarcane, a rate determined by the Central Government. Ensuring the payment of these dues through soft loans will provide relief to sugarcane growers. Simultaneously, it will alleviate the financial difficulties faced by the sugar mills, thereby facilitating smoother sugarcane crushing operations in the upcoming season.

The Chief Minister of Maharashtra stated that the process for obtaining loans under this scheme has been simplified for the sugar mills, and the interest on these loans will be borne by the state government.

Sugar mills in Maharashtra have already paid 99.5 percent of the sugarcane FRP to farmers, placing the state at the forefront nationwide in terms of FRP clearance. It is noteworthy that Maharashtra is India's leading sugar-producing state and the second-largest producer of sugarcane; Uttar Pradesh holds the top position in sugarcane production.