News Capsule: Maharashtra sugar industry under pressure despite higher output
30-Mar-2026 12:20 PM
News Capsule: Maharashtra sugar industry under pressure despite higher output
★ Despite higher sugar production this season, Maharashtra’s sugar industry is facing multiple challenges. Mills shut operations in about 100 days, much earlier than the usual 160-day crushing season, leading to underutilisation of capacity.
★ Key factors impacting the sector include disrupted exports due to tensions in West Asia and damage to standing sugarcane crops from unseasonal rains in November–December, which forced mills to close early.
★ As per state data, in the 2025–26 season, about 1,042.88 lakh tonnes of cane were crushed, producing around 98.8 lakh tonnes of sugar. This is higher than last year but lower than the 110 lakh tonnes recorded in 2023–24.
★ The industry has sought government support, including a subsidy of ₹500 per tonne, restructuring of ₹8,000 crore loans, and an increase in the ethanol blending quota beyond the current 30%. Despite an installed ethanol capacity of 424 crore litres, only 116 crore litres have been allocated, resulting in utilisation of around 27%.
★ Pricing pressures continue to mount. The Fair Remunerative Price (FRP) for sugarcane has increased from ₹2,750 per tonne in 2018–19 to ₹3,550 per tonne in 2025–26, while the Minimum Selling Price (MSP) of sugar remains unchanged at ₹31 per kg. The industry is demanding a hike to ₹41 per kg.
★ Early mill closures have led to estimated losses of around ₹3,300 crore, while dues of about ₹4,315 crore to farmers are still pending.