look news india
The ongoing controversy over the payment of sugarcane has once again shaken the politics and agricultural sector of Maharashtra. Recently, the Maharashtra government led by Devendra Fadnavis has quashed the order issued by the Maharashtra (MVA) government in 2022 following the Bombay High Court order. Under this order, sugarcane farmers were said to pay in two installments. Now after the instructions of the court, farmers will be paid outright.
What was the order of Uddhav Sarkar?
In 2022, the then Chief Minister Uddhav Thackeray’s government issued an order on 21 February, according to which the sugar mill owners were allowed to pay FRP (FAIR and Remunerative Price) in two stages. The first installment was calculated based on Chinese recovery rate of 10% for Pune and Nashik and 9.5% for other areas. The remaining amount was to be given according to the sugar production after the end of the season. The government argued that this would benefit the farmers on the basis of sugar recovery of the current season.
However, this decision did not appeal to sugarcane producing farmers. Farmer leader Raju Shetty challenged it in the Bombay High Court, calling it unconstitutional. He argued that FRP is a central system, which the state government cannot change.
High court order
On 17 March 2025, the Bombay High Court quashed the 2022 government order and ruled in favor of the farmers. The court said that sugarcane and Chinese essentials fall under the Act, 1955 and the central government has fixed the value of sugarcane of farmers, which is mandatory to pay on time.
The court said, “Farmers are entitled to FRP at the beginning of crushing season. If the payment is delayed, the farmers will have to face the economic crisis.”
What is FRP system?
The system of payment for sugarcane is based on the FRP fixed by the central government. It determines the recommendations of the Agricultural Costs and Price Commission (CACP), and it approves the Cabinet Committee on Economic Affairs headed by the Prime Minister.
Sugar mills are legally obliged to pay FRPs to farmers within 14 days of sugarcane sale. Legal action can be taken against the mill owners if the payment is delayed and the property can be attached even if needed.
Current FRP Rate
The FRP ₹ 340 per quintal has been fixed at the sugar recovery rate of 10.25% for the 2024-25 Chinese season, which is more than ₹ 315 per quintal at the rate of 2023-24.
Wide impact of decision
The decision by the Maharashtra government to cancel the old order is also important because many political leaders of the state, including Deputy Chief Minister Ajit Pawar and former Union Minister Sharad Pawar, are directly or indirectly associated with the sugar mill industry.
Now all the sugar mills of the state will have to pay outright FRP to farmers. This is not only in the interest of farmers but is a big step towards ensuring transparency and timely payment in the agriculture sector.