News Capsule: Half of Maharashtra sugar mills may remain shut next season
12-Mar-2026 12:05 PM
News Capsule: Half of Maharashtra sugar mills may remain shut next season
★ Maharashtra’s Cooperation Minister said that more than half of the state’s sugar mills may remain closed in the next crushing season due to a possible shortage of sugarcane and increasing financial stress in the industry.
★ He stated that drought-like conditions expected in the coming kharif season could reduce cane availability. At present, 210 sugar mills are operational in the state, including 103 cooperative mills and 107 private mills.
★ Over the past six years, the Fair and Remunerative Price (FRP) of sugarcane has been increased six times, while the Minimum Selling Price (MSP) of sugar has remained unchanged at ₹31 per kg since 2019, putting pressure on mill finances.
★ Most mills are currently operating for only about 90 days instead of the required 150 days, making it difficult to recover operational costs.
★ Limited domestic sales quotas and restricted ethanol production allocations are also affecting the cash flow of sugar mills.