Archive · 3 Aug 2025
Maharashtra Sugar Mills Face Action Over Farmer Dues
Some sugar mills in Maharashtra haven't paid farmers what they owe for their sugarcane.
The government is taking action, and could seize and sell the sugar the mills have to pay the farmers.
Farmers were supposed to be paid over 31,000 crore rupees.
The Bombay High Court ruled against a rule that allowed mills to pay farmers in installments, but the government is fighting this decision in the Supreme Court.
A farmer leader is also involved, making sure the farmers get paid.
Maharashtra sugar mills face action for unpaid dues to farmers.
28 mills face potential seizure of sugar stocks for non-payment.
Mills owed farmers Rs 31,587 crore for the 2024-25 season.
Bombay High Court struck down a 2022 resolution allowing partial FRP payments.
The state government has appealed the High Court's decision to the Supreme Court.
- Who
- Sugar mills, farmers, the Sugar Commissionerate, and the Bombay High Court.
- What
- 28 Maharashtra sugar mills face action for failing to pay dues to farmers.
- When
- As of July 15, the report was released.
- Where
- Maharashtra, India.
- Why
- To ensure farmers receive their payments for sugarcane.
Farmers' Perspective
Government's Perspective
Payment Schedule
Farmers' Perspective
Farmers want prompt and full payment of Fair Remunerative Price (FRP) for their sugarcane.
Government's Perspective
The government aims for a payment structure that balances the needs of both farmers and sugar mills.
Payment method
Farmers' Perspective
Farmers opposed a government resolution allowing partial FRP payments.
Government's Perspective
The sugar mills prefer installment payments.
- Mills facing action
- 28
- Total dues owed
- Rs 31,587 crore
- Percentage of dues cleared (as of July 15)
- 98.70%
- Mills that cleared 100% FRP
- 135
- Court Involved
- Bombay High Court and Supreme Court