This document summarizes the Indian Ministry of Consumer Affairs, Food & Public Distribution's response to Lok Sabha Unstarred Question No. 4380 regarding the Fair and Remunerative Price (FRP) payments to sugarcane farmers in Kolhapur, Maharashtra.
The Ministry confirms that the State Government of Maharashtra assesses sugar mills' performance in timely FRP payments on a fortnightly basis. While all sugar factories in Kolhapur district reportedly paid FRP within the stipulated time during Sugar Seasons (SS) 2022-23 and 2023-24, during SS 2024-25, 8 out of 23 sugar factories in Kolhapur defaulted on FRP payments, with arrears amounting to Rs. 38.81 crore.
The State Governments/UTs are empowered to monitor cane price payments and take action against delays. Under Section 38 of the Sugarcane Control Order, 1966, Revenue Recovery Certificates (RRCs) can be issued. The Government of Maharashtra has issued RRC notices to the defaulting sugar factories and conducted a hearing on August 8, 2025, before the Sugar Commissioner. A deadline has been given to pay the arrears of FRP and the next hearing has been fixed on September 9, 2025.
The Ministry indicates that there are no plans to revise the FRP policy regulations at this time, deeming the current policy sufficient for regulating timely payments.
Key Entities Referenced
Fair and Remunerative Price (FRP): The minimum price that sugar mills are required to pay to sugarcane farmers for their produce, as mandated by the Government of India.
Sugarcane Control Order, 1966: A legal order that regulates the production, supply, and distribution of sugarcane, including provisions for cane price payment.
Kolhapur, Maharashtra: A district in the state of Maharashtra, India, known for its sugar production and the location of sugar mills mentioned in the context of FRP payments.
Maharashtra: A state in India, where Kolhapur is located, and the State Government is responsible for monitoring and enforcing FRP payments by sugar mills.
Sugar Season (SS) 2022-23: A period in which sugarcane is harvested and processed into sugar.
Sugar Season (SS) 2023-24: A period in which sugarcane is harvested and processed into sugar.
Sugar Season (SS) 2024-25: A period in which sugarcane is harvested and processed into sugar.
Revenue Recovery Certificate (RRC): A certificate issued by the State Government of Maharashtra to recover unpaid FRP amounts from defaulting sugar factories.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 4380
TO BE ANSWERED ON 20TH AUGUST, 2025
FRP FOR SUGARCANE FARMERS
4380 SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be
pleased to state:
(a) whether the Government has assessed the performance of sugar mills in Kolhapur
concerning the timely payment of Fair and Remunerative Price (FRP) to sugarcane farmers in
Maharashtra;
(b) if so, the number of mills in Kolhapur that have delayed FRP payments over the last three
seasons;
(c) the steps being taken by the Government to ensure strict enforcement of the Sugarcane
Control Order, 1966, in this regard; and
(d) whether the Government is considering making the FRP Policy Regulations based on
contemporary times and if so, the details thereon
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a): Yes. The State Government of Maharashtra periodically (fortnightly basis) assesses
all the sugar factories in the State including Kolhapur district, regarding timely payment of
Fair and Remunerative Price (FRP) to sugarcane farmers.
(b): The State Government of Maharashtra has reported that during the Sugar Season
(SS) 2022-23 and 2023-24, all the sugar factories in Kolhapur district have paid the FRP to
farmers within time limit. During SS 2024-25, 23 sugar factories have undertaken the
crushing in the Kolhapur district, out of which 15 sugar factories have fully paid the FRP
amount and 08 sugar factories have defaulted on the FRP payment amounting to Rs. 38.81
crore-2-
(c): The powers have been delegated and vested with the State Governments/UTs for
monitoring the cane price payment position of sugar factories on periodical basis and in
case of delay in payments, suitable action is taken by them.
If the FRP amount is not paid or is delayed, action under section 3(8) of the
Sugarcane (Control) Order, 1966, can be initiated against the concerned factory by issuing a
Revenue Recovery Certificate (RRC) by the State Government.
The State Government of Maharashtra has informed that for defaulting sugar
factories RRC notice are issued for assessing the reasons for default. A hearing has been
held before the Sugar Commissioner, Government of Maharashtra on 8/8/2025 for above 08
sugar factories. As per their written demand, a deadline has been given to them to pay the
arrears of FRP and the next hearing has been fixed on 9/9/2025.
(d): No such policy is currently under consideration. The present policy is sufficient to
regulate the timely payment of FRP within stipulated time period.
See gcSeSe