Mumbai, March 24: Maharashtra Chief Minister Devendra Fadnavis has directed the Chief Secretary to establish a state-level committee aimed at addressing financial assistance issues related to the Sugar Industry. This directive was issued during a meeting held at the Vidhan Bhavan to discuss the challenges faced by the sugar sector.
The committee will comprise secretaries from the cooperatives, agriculture, and finance departments, along with the sugar commissioner, the industry secretary, and the managing director of the state cooperative bank.
Fadnavis stated that the committee will conduct an in-depth study of the difficulties faced by sugar mills, the nature of their problems, potential remedial measures, and alternative arrangements. This will enable the state government to prepare a financial package for the industry.
He emphasized the need for a work plan to provide potential financial assistance before the upcoming crushing season. Additionally, the Chief Minister highlighted the necessity for a regulatory framework for large projects involving jaggery and khandsari, which should be drafted within the next 15 days.
“The state government is committed to empowering the sugar industry and is taking a positive stance towards strategic decision-making to overcome its obstacles,” Fadnavis remarked.
He also mentioned that the state government would seek to meet with the central government alongside a delegation from the sugar factory association to ensure necessary support and concessions for the industry.
Earlier, representatives from the sugar industry, including Harshvardhan Patil, Dilip Walse Patil, Jayant Patil, Rajesh Tope, and Abhimanyu Pawar, had urged the state government to provide direct financial assistance of ₹500 per ton to cover the fair and remunerative price (FRP), similar to what is offered in Punjab and Karnataka.
They requested the government to facilitate open market loans with interest subsidies for clearing pending dues and called for long-term restructuring of all factory loans by March 31, which would include a two-year moratorium and a repayment period of 10-12 years.
Industry representatives also requested the Chief Minister to lead a delegation to Prime Minister Modi and Home and Cooperation Minister Amit Shah, seeking an increase in the minimum support price (MSP) for sugar to ₹4,100 per quintal, a rise in ethanol prices, the release of ₹69 crore in pending interest subsidies for 21 ethanol projects, and directives for banks to provide loans despite lower margins.