The Maharashtra state government has established a nine-member committee, headed by Chief Secretary Rajesh Aggarwal, to examine the ongoing crisis in the sugar industry and propose measures to be implemented from the 2026-27 sugarcane crushing season.
Composition of the Panel
The panel includes additional chief secretaries from the finance, agriculture, and energy departments, along with principal secretaries of industry, cooperation, and marketing. Other members are the managing director of the Maharashtra State Cooperative Bank, the cooperation commissioner, and the sugar commissioner.
Terms of Reference
According to a notification issued by the state cooperation, marketing, and textile department on Friday, the committee is tasked with studying the challenges and difficulties faced by the sugar industry in the state. It must submit a report containing solutions and alternatives to the state government.
Background of the Crisis
During a meeting with Chief Minister Devendra Fadnavis last month, the Federation of Sugar Mills in Maharashtra revealed that the industry has accumulated total loans of approximately Rs 13,000 crore and lacks sufficient liquidity for repayment. Mill representatives claimed that banks are not sanctioning loans equivalent to the Fair and Remunerative Price (FRP) of sugarcane and sought a grant of Rs 500 per tonne for the industry.
They further stated that sugar mills have outstanding dues of Rs 5,000 crore towards FRP payments to farmers. The federation has demanded restructuring of the Rs 13,000 crore loan with a seven-year repayment period, in addition to seeking a pre-harvesting loan of around Rs 5,500 crore for the 2026-27 crushing season.
The committee's formation aims to address these pressing issues and ensure the sustainability of the sugar industry, which is vital to Maharashtra's agrarian economy.
