What New Incentive Scheme Has the Maha Govt Introduced for Sugar Factories?

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What New Incentive Scheme Has the Maha Govt Introduced for Sugar Factories?

Synopsis

Maharashtra's new incentive scheme for sugar factories promotes excellence in performance, focusing on sustainability and timely payments. Discover how this initiative could transform the state's sugar industry.

Key Takeaways

  • Incentive scheme to enhance performance in sugar factories.
  • Awards for six factories annually, three cooperative and three private.
  • Evaluation based on nine parameters including sustainability and financial management.
  • FRP payments carry significant weight in the scoring system.
  • Two-tier committee structure for fair selection.

Mumbai, Nov 12 (NationPress) The Maharashtra government has unveiled a new incentive scheme aimed at promoting superior performance among cooperative and private sugar factories across the state.

Every year, six factories—three from the cooperative sector and three from the private sector—will be awarded based on their performance. A governmental resolution has been issued to formalize this initiative.

Under the resolution, sugar factories will be evaluated on nine key criteria including consistent payment of the Fair and Remunerative Price (FRP) to farmers for three consecutive years, sugar recovery rates, incentives for farmers achieving high production per hectare, integration of artificial intelligence, maximum area coverage, low carbon emissions, generation of carbon credits, timely repayment of government loans, adherence to employee strength limits, salary distribution, and precise financial management.

The FRP payments will account for 15 points, while points for financial management and employee limits will each contribute 5 points. All other criteria will be valued at 10 points each. A two-tier committee will oversee the selection process.

The Screening Committee, led by the Sugar Commissioner, will include the Joint Director of Sugar (Pune) as the member secretary.

Other members will consist of directors from the Economics and Administration divisions of the Sugar Commissioner's office, a representative from the Vasantdada Sugar Institute, one from the sugar federation, and two independent experts with expertise in economics, engineering, or agriculture relevant to the sugar sector.

A separate Steering Committee has been established under the chairmanship of the Minister of Cooperation, with the Deputy Secretary of the Cooperation Department as the member secretary. This committee will include the Minister of State for Cooperation, the Principal Secretary of the Cooperation Department, and the Sugar Commissioner.

As per the resolution, the Selection Committee will finalize the top three cooperative and private sugar factories based on the proposals from the Screening Committee. The exact prize amounts have yet to be disclosed.

Previously, Maharashtra Chief Minister Devendra Fadnavis announced on September 30 that the sugarcane crushing season for 2025-26 will begin on November 1.

This decision was made during a ministerial committee meeting led by the Chief Minister in response to significant rainfall and flood-induced damages in various regions of the state, as stated in an official release.

The government also resolved to impose a fee of Rs 10 per tonne of sugarcane for the Chief Minister's Relief Fund and an additional Rs 5 per tonne to support farmers affected by floods.

Point of View

The Maharashtra government's incentive scheme represents a strategic move to bolster the sugar industry by promoting best practices among sugar factories. This initiative not only supports farmers through timely payments but also encourages technological advancements and environmental considerations, aligning with national sustainability goals.
NationPress
13/11/2025

Frequently Asked Questions

What is the purpose of the incentive scheme?
The incentive scheme aims to enhance performance quality among cooperative and private sugar factories in Maharashtra.
How are the sugar factories evaluated?
Sugar factories are assessed based on nine parameters, including timely FRP payments, sugar recovery rates, and sustainability practices.
What points system is used for evaluation?
The evaluation consists of a points system where FRP payments are worth 15 points and other criteria are valued at 10 points each, with financial management and employee limits at 5 points each.
Who oversees the selection process?
A two-tier committee system, including a Screening Committee and a Steering Committee, oversees the selection of awardees.
When does the sugarcane crushing season start?
The sugarcane crushing season for 2025-26 is set to commence on November 1.
Nation Press