Maharashtra Sugar Output May Not Exceed 85 Lakh Tonnes

Maharashtra's sugar production in the upcoming crushing season may not cross 85 lakh tonnes, according to National Federation of Cooperative Sugar Factories Ltd. (NFCSF) President Harshvardhan Patil.

Patil stated that the federation had informed the government about the ground situation, citing concerns over cane availability and sugar recovery. The assessment comes amid the state government's projection of around 112 lakh tonnes of sugar production, based on an estimated cane yield of 81 tonnes per hectare and sugar recovery of 11.25%.

Industry representatives have questioned this estimate, pointing to lower cane yields and recovery. Last season, Maharashtra's mills operated for about 104 days and produced around 104 lakh tonnes after diversion of sugar for ethanol.

The NFCSF has sought a revision of the minimum selling price (MSP) of sugar to Rs 45-50 per kg, citing rising input and production costs. The MSP has remained unchanged for eight years. Patil also sought a soft-loan package to help mills meet expenses towards harvesting, transportation, salaries, and maintenance.

Chief Minister Devendra Fadnavis has assured the industry that the government would place a proposal before the state Cabinet and explore guarantees for such loans. The NFCSF has also called for action against illegal jaggery-making units, arguing that they divert sugarcane and distort the cane market.

The federation has consistently sought a stronger link between sugar prices and the Fair and Remunerative Price (FRP) of cane to ensure mills remain financially viable and farmers receive timely payments. Its proposed reforms include continuation of the reserved cane-area system, retention of the 25-km minimum distance criterion between mills, and long-term policy stability.

Patil's comments come days after the sugar industry said there was no shortage of sugar despite a sharp rise in retail prices. The NFCSF had pointed out that ex-mill prices, which briefly touched nearly Rs 50 per kg, subsequently fell by almost 30 per cent.

The industry has pegged its average production cost at around Rs 42-43 per kg. At the Pune interaction, Patil also highlighted the need to transform cooperative sugar factories into integrated bioenergy centres, citing Compressed Bio-Gas (CBG) as a major diversification opportunity.

The sugar industry's concerns and the potential shortfall in production may have significant implications for Maharashtra's economy and the livelihoods of farmers and mill workers. The state government's response to the industry's demands and the actual sugar production in the upcoming season will be closely watched in the coming months.