Sugar export ban rollback demanded by parties, farmer groups in Maharashtra
Synopsis
Key Takeaways
Ruling and opposition parties, along with major farmer organisations in Maharashtra, on Thursday, 14 May mounted a unified front demanding the Centre immediately roll back its ban on sugar exports, warning that the move threatens the financial survival of cooperative sugar mills and deepens a crisis for sugarcane farmers already owed thousands of crores in unpaid dues.
Key Demands and Political Response
Veteran Nationalist Congress Party (NCP) leader and former state Cooperation Minister Dilip Walse-Patil said the ban was inexplicable given bumper sugar production. 'Even though there has been bumper sugar production, it is inexplicable to continue the export ban. Factories will be able to provide increased FRP only if money keeps circulating with them. The government should understand the difficulties of the sugar industry and immediately permit exports,' he said.
NCP (SP) legislator and former state Finance Minister Jayant Patil called the ban a double blow for Maharashtra's sugar mills. 'Excess stock plus increased FRP plus no exports = financial disaster. We need foreign exchange, yet we're locking away our surplus. This is a hasty and ill-prepared decision and needs an immediate rollback,' he said.
Farmer Organisations Sound the Alarm
Leaders of the All India Kisan Sabha (AIKS) also demanded the Central Government lift the export ban immediately, arguing that India should adopt an export-oriented policy to tap global markets where sugar production has reportedly declined. Raju Shetti, founder of the Swabhimani Shetkari Sanghatana, criticised the decision as 'foolish', warning it would directly hurt farmers. He questioned why factories should be barred from exporting when global prices are high, particularly since the government has declined to raise domestic prices.
Shetti also flagged that nearly ₹12,000 crore in sugarcane dues are pending across the country, with around ₹3,000 crore owed in Maharashtra alone, and demanded accountability for the crisis.
Sharad Pawar Terms Ban 'Economically Disastrous'
NCP (SP) president Sharad Pawar launched a sharp attack on the ban at a press conference in Pune, calling it 'economically disastrous' for Maharashtra's cooperative sector. He argued the ban had arrived precisely when the state was already grappling with excess sugar production, cutting off the liquidity mills needed to pay the recently increased Fair and Remunerative Price (FRP) to farmers. 'The industry was finally seeing a window of liquidity through international markets. By shutting this door, the government is making it impossible for mills to survive and fulfil their legal obligations to sugarcane growers,' Pawar said. He also sought government intervention over crop damage caused by unseasonal rain.
Maharashtra's Sugar Sector: Scale of the Stakes
The scale of the crisis is underscored by Maharashtra's sugar footprint. During 2025-26, sugarcane cultivation covered 16.06 lakh hectares across the state, with 208 sugar factories — including private and cooperative units — in operation. The state crushed 1,045.58 lakh tonnes of sugarcane and produced 991.81 lakh tonnes of sugar. The cash crop carries significant political weight, with several political leaders directly running cooperative sugar mills that are central to local power structures.
What Happens Next
With cross-party pressure mounting and farmer bodies threatening escalation, the Centre faces growing demands to reconsider the ban before the 2026 sugar season. Industry observers note that a continued export freeze, combined with elevated FRP obligations and excess domestic stock, could trigger mill-level insolvencies — a scenario that would ripple through Maharashtra's rural economy ahead of a politically sensitive period.