The Maharashtra Cabinet has approved soft loans of around Rs 750 crore for cooperative sugar mills to help them pay pending Fair and Remunerative Price (FRP) dues to sugarcane farmers for the 2025-26 crushing season and meet operational requirements for the 2026-27 season.
The decision was taken at the weekly Cabinet meeting on Tuesday, chaired by Chief Minister Devendra Fadnavis, the Chief Minister’s Office (CMO) said.
The financial assistance is aimed at helping mills overcome liquidity constraints and settle outstanding cane payments. The government said the measure would benefit both sugarcane growers awaiting their dues and cooperative mills facing financial pressure.
FRP is the statutory price that sugar mills are required to pay sugarcane growers for their produce. Timely payment of these dues is a key issue for farmers, particularly as the industry prepares for the new crushing season.
The soft-loan package is also intended to provide working support to cooperative mills as they gear up for 2026-27 operations. By enabling mills to access concessional finance, the government expects them to manage their pending liabilities while maintaining their operational preparedness for the upcoming season.
The state Cabinet also cleared changes to the Maharashtra Agricultural Lands (Ceiling on Holdings) Act, 1961, paving the way for the return of state farming corporation land in Haregaon village of Ahilyanagar district to its original owners.
The sugar-sector decision comes ahead of the 2026-27 crushing season and focuses on easing the financial pressure on cooperative mills while facilitating payment of outstanding FRP dues to farmers.