Substantial Arrears Owed to Sugarcane Farmers by Sugar Mills in Maharashtra

18-Mar-2026 11:47 AM

Pune: In Maharashtra—the country's leading sugar-producing state—the outstanding dues owed by sugar mills to sugarcane farmers surged to a high of ₹4,898 crore as of February 28, 2026.

In light of this situation, the apex industry body—the Indian Sugar and Bio-energy Manufacturers Association (ISMA)—has urged the government to immediately increase the ex-factory Minimum Selling Price (MSP) of sugar.

The sugar production season has progressed significantly and has now reached its final phase; consequently, the domestic industry is demanding an appropriate and expeditious hike in the sugar MSP and is eagerly awaiting a government decision on the matter.

ISMA points out that due to annual increases in the Fair and Remunerative Price (FRP) of sugarcane, coupled with rising operational costs, the overall cost of sugar production has escalated significantly.

Conversely, the MSP for sugar has remained stagnant at ₹3,100 per quintal for the past six years. This disparity is inflicting heavy financial losses upon sugar mills, and the resulting pressure on cash flow

is creating significant difficulties for them in clearing the outstanding dues owed to sugarcane growers. The sugar industry is also grappling with various other challenges that warrant serious attention from the government.

In Maharashtra, the outstanding sugarcane price dues owed by sugar mills stood at ₹2,949 crore as of February 28 last year; this figure has since surged to a high of ₹4,898 crore this year.