Mumbai, Sep 3: The Maharashtra government is preparing a financial support package for cooperative sugar mills to help them get ready for the upcoming crushing season and ensure that sugarcane farmers receive their Fair and Remunerative Price (FRP) payments on time.
Deputy Chief Minister Sunetra Ajit Pawar has directed officials to place a proposal for a soft loan scheme before the state Cabinet at the earliest. The proposed facility is expected to provide cooperative mills with easier access to funds and help them manage financial pressures during the crucial period before the new crushing season begins.
The move is aimed at supporting mills that are facing cash-flow challenges and ensuring that their financial difficulties do not affect payments due to farmers. Timely settlement of FRP is particularly important as mills prepare to begin procurement and crushing operations for the new season.
The proposal was discussed at a meeting chaired by Pawar in Mumbai, where officials also examined plans to strengthen the financial position of cooperative sugar factories through greater use of their by-products.
Under the proposed by-product policy, sugar mills would be encouraged to diversify beyond conventional sugar production and develop additional revenue streams. Areas being considered include solar power, cogeneration, first-generation and second-generation ethanol, compressed biogas, green hydrogen, bio-bitumen, biochemicals and sustainable aviation fuel.
The government believes greater diversification could help mills make better use of existing resources while creating new sources of income. This could reduce their dependence on sugar sales and improve their ability to manage financial pressures over the longer term.
The soft loan proposal and the proposed by-product policy are therefore being viewed as complementary measures. While easier financing could help mills meet their immediate working-capital requirements, investment in value-added products could strengthen their financial position in the future.
The initiatives are also significant for sugarcane farmers, as financially healthier mills would be better placed to meet their FRP obligations without delays.
The proposals will now be taken forward for consideration by the state Cabinet. The broader objective is to strengthen Maharashtra’s cooperative sugar sector, support farmers and ensure that preparations for the upcoming crushing season proceed smoothly.