Nearly half of Maharashtra’s sugar mills may remain closed in the next crushing season due to a shortage of sugarcane and mounting financial pressure on the industry, the state’s Cooperation Minister has said.
Speaking in the state legislature, the minister highlighted that the sugar sector in Maharashtra is facing several structural challenges, including rising input costs and stagnant sugar prices. He pointed out that while the Fair and Remunerative Price (FRP) for sugarcane has increased in recent years to benefit farmers, the Minimum Selling Price (MSP) of sugar has remained unchanged for a long period. This imbalance has significantly impacted the financial health of sugar mills.
Industry experts believe that the mismatch between cane prices and sugar prices has eroded the profitability of mills. Many factories are finding it difficult to cover operational expenses, which could lead to a large number of units remaining shut in the coming season.
Weather conditions have also affected sugarcane production in several parts of the state. In some regions, excessive rainfall has resulted in lower sugar recovery levels despite healthy-looking crops, while other areas have reported reduced yields due to unfavourable climatic conditions. These factors are likely to reduce the availability of sugarcane for the next crushing season.
Maharashtra is one of the country’s largest sugar-producing states, with over 200 sugar mills operating during the current season. However, several mills have reportedly been running for shorter durations due to limited cane supply. Industry representatives say that most mills require at least 140 to 150 days of crushing operations to remain financially viable, but many units are operating for significantly fewer days.
The issue has raised concerns among policymakers and industry stakeholders about the long-term sustainability of the sector. Legislators also flagged complaints related to irregularities in weighbridge operations at certain sugar mills and called for stricter monitoring.
The minister said inspections are being conducted by the Legal Metrology Department and action will be taken against units found violating regulations. He added that unless the sector’s challenges are addressed, the number of operational sugar mills in Maharashtra could decline significantly in the next season, affecting both the industry and farmers.