Maharashtra approves ₹750 crore interest-free loans for cooperative sugar mills

The Maharashtra Cabinet has cleared ₹750 crore in interest-free soft loans for cooperative sugar mills to settle sugarcane farmers’ FRP dues, procure cane and support operations through the 2026-27 crushing season.

— Source publishedTue, 15 Sept, 2026, 18:03 IST·First seen Tue, 15 Sept, 2026, 18:07 IST·Source BL · Consumer & Economy

What happened

Maharashtra Cabinet · Maharashtra approved ₹750 crore in interest-free soft loans for cooperative sugar mills to clear sugarcane farmers’ FRP dues, procure cane

Key facts

  • ₹750 crore
  • 2025-26 crushing season
  • 2026-27
  • 99.5% FRP payment clearance

What changed

Maharashtra approved ₹750 crore in interest-free soft loans for cooperative sugar mills to clear sugarcane farmers’ FRP dues, procure cane and sustain operations through the 2026-27 crushing season.

Why this matters

Interest-free state loans should ease cooperative mills’ working-capital pressure, supporting timely cane procurement and farmer payments through the 2026-27 crushing season.

What to watch

  • Actual disbursement timing and mill-level utilization of the ₹750 crore loan facility.
  • Maharashtra cane acreage, monsoon performance, cane yields and sugar recovery rates ahead of 2026-27 crushing.
  • FRP payment data, including whether the reported 99.5% clearance remains durable through the next procurement cycle.
  • Wholesale and ex-mill sugar prices versus MSP, indicating whether mills can operate without further support.
  • Central government decisions on sugar exports, domestic stock rules and cane diversion toward ethanol.

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