1 hr ago
Maharashtra Cabinet Approves Rs 738.51-Crore Sugar Mill Interest Subsidy
Maharashtra is giving cooperative sugar mills easier loans.
The government will pay the interest on these loans, costing about Rs 738.51 crore.
The mills can use the money to pay sugarcane farmers what they are owed.
Mills without unpaid farmer dues can use the money to get ready for the next crushing season.
The loans must be approved and given by October 31.
Mills will have seven years to repay them.
Mills that do not pay instalments on time can lose the subsidy next year.
The government is also watching low rainfall across several parts of the state.
The Maharashtra Cabinet approved a soft-loan scheme with an estimated Rs 738.51 crore interest subsidy for cooperative sugar mills.
The loans will help mills clear pending Fair and Remunerative Price dues for the 2025-26 season and prepare for 2026-27 crushing.
Banks must sanction and disburse eligible loans by October 31, with repayment scheduled over seven years from October 1.
The state government will pay the loan interest, but mills missing instalments will lose eligibility for the subsidy the following year.
Fourteen of Maharashtra’s 36 districts received less than 75% of average rainfall, prompting the government to address drought-like conditions.
- Who
- The Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, approved the scheme for cooperative sugar mills and sugarcane farmers.
- What
- A soft-loan scheme with an estimated Rs 738.51 crore interest subsidy was approved.
- Where
- Maharashtra, with the decision taken at Mantralaya in Mumbai.
- When
- The decision was taken on Tuesday; eligible loans must be sanctioned and disbursed by October 31, ahead of the crushing season beginning October 15.
- Why
- To help cooperative mills clear pending Fair and Remunerative Price dues and prepare for the 2026-27 crushing season amid financial difficulties.
Key facts
- Interest subsidy
- Estimated at Rs 738.51 crore.
- Eligible beneficiaries
- Cooperative sugar mills in Maharashtra.
- Loan use
- Clearing pending 2025-26 Fair and Remunerative Price dues or preparing for the 2026-27 crushing season.
- Repayment period
- Seven years from October 1.
- Loan deadline
- Loans must be sanctioned and disbursed by October 31.
- Utilisation proof
- Beneficiary mills must submit proof of loan utilisation by July 2027.
- Rainfall concern
- Fourteen of Maharashtra’s 36 districts received less than 75% of average rainfall.
Quotes
Devendra Fadnavis
Maharashtra Chief Minister
“The State government has approved a soft loan policy of around Rs 738.51 crore for cooperative sugar mills. As per this policy, the mills will get loans easily. The government will pay the interest on the loans. With this decision, the mills can take sugarcane from the farmers.”
deccanchronicle.com
Sources
Related news
Maharashtra Plans Soft Loans and By-Product Policy for Sugar Mills
Maharashtra Cabinet Approves Soft Loans to Clear Sugarcane Dues
Maharashtra Clears Rs 335 Crore for Mahayuti-Linked Sugar Mills
Maharashtra Sets October 15 Sugar Crushing Start Amid Import Debate
Maharashtra Approves ₹86.65 Crore Relief For Kharif Losses
India's Sugar Sector Faces a Testing 2026-27 Season
Maharashtra Launches Mahakhanij 2.0 Against Illegal Mining
Shiv Sena Backs Uniform Civil Code Push in NDA-Ruled States
Fadnavis, Shinde Urge Restraint as Jarange Heads to Mumbai
Maharashtra Waqf Board Faces Allegations Over Funds, Appointments
