MUMBAI, May 2 -- While sugar factories in Maharashtra are already facing a financial challenge in paying the Fair and Remunerative Price (FRP) to sugarcane farmers-some have even received notices for not paying even 60% of the FRP-the union government's decision to increase the FRP by Rs.150 per tonne has added to their woes, especially since the minimum selling price (MSP) of sugar has not increased from Rs.31 per kg for the last six years. The National Federation of Cooperative Sugar Factories (NFCSF) has now decided to meet and request union co-operation minister Amit Shah to intervene in the matter. In Maharashtra, the sugar industry plays a significant role in the rural economy, and most sugar factories, cooperative or private, are associated with political leaders across parties. In 2024-25, a total of 200 sugar factories (101 private factories and 99 cooperative ones) produced 80.95 lakh metric tonnes of sugar. "In Maharashtra, the sugar industry affects the lives of over three million sugarcane farmers," said an official from the Maharashtra State Co-operative Sugar Factories Federation (MSCSFF). "The sugar industry also contributes around Rs.3,700 crore of tax revenue to the state exchequer. This year, due to several reasons, sugar production in Maharashtra has dropped by 3 million tonnes from last year, and factories are facing financial issues." The MSCFF recently wrote to finance minister Ajit Pawar about the financial crisis faced by its members. It pointed out that due to financial problems, over 100 sugar factories were not able to pay the sugarcane farmers the mandated FRP. In April, the sugar commissioner of Maharashtra had served notices to around 15 sugar factories for paying less than 60% of the FRP. Officials further stated that to make the sugar business viable for factories and enable them to pay the necessary FRP to farmers, the government needed to increase the MSP to at least Rs.40 per kg and also increase the procurement rate of ethanol (produced by several sugar factories) by Rs.10 to Rs.70 per litre. Harshwardhan Patil, chairman of NFCSF, said, "We welcome the decision to increase the FRP for sugarcane by Rs.150 per tonne, as it will increase the income of farmers. But at the same time, it will affect the finances of sugar factories, as for the last six years there has been no hike in the MSP for sugar. The FRP for sugarcane has gone up from Rs.2,750 per tonne in 2019-20 to Rs.3,550 per tonne in 2025-26 but the MSP is static at Rs.3,100 since 2019." Patil pointed out that with the hike in FRP, sugar factories would now have to pay Rs.3,550 per tonne to sugarcane farmers but would earn only Rs.3,100 per quintal. "The MSP for sugar and the rate for ethanol need to be hiked," he said. "The price paid by MSEB to sugar factories for the electricity generated from bagasse (the sugarcane residue left after extraction of juice) also needs to go up. We are seeking the intervention of union cooperation minister Amit Shah, and will meet him in a delegation."...