Mumbai, March 24 (NationPress) The Chief Minister of Maharashtra, Devendra Fadnavis, has instructed the Chief Secretary to establish a state-level committee aimed at tackling the financial assistance issues plaguing the sugar sector and has requested an immediate report.

This committee will comprise secretaries from various departments, including Cooperation, Agriculture, and Finance, alongside the Sugar Commissioner, the Industry Secretary, and the Managing Director of the State Cooperative Bank.

During a meeting held at Vidhan Bhavan to address the challenges confronting the sugar industry, CM Fadnavis emphasized that the committee is tasked with conducting an in-depth analysis of the obstacles faced by sugar mills, identifying their problems, proposing solutions, and exploring alternative strategies to provide a prompt report.

“This initiative will assist the state government in crafting a financial aid package for the sugar industry,” he remarked.

In light of the financial struggles of the state's sugar factories, the Chief Minister urged the formulation of an action plan to deliver potential financial support ahead of the forthcoming crushing season.

He highlighted the necessity for a regulatory framework from the state government for large-scale jaggery and khandsari projects, mandating that a draft of these regulations be submitted within 15 days.

“The state government is committed to making strategic decisions that will enable the sugar industry to overcome its challenges,” CM Fadnavis stated.

Moreover, he mentioned that the state government plans to convene a meeting with the Central Government, along with representatives from the Sugar Factory Federation, to obtain essential cooperation and concessions.

He assured that the state would exert every effort to secure support from both state and central authorities to mitigate the difficulties faced by sugar factories.

Previously, representatives from the sugar industry, including Harshwardhan Patil, Dilip Walse Patil, Jayant Patil, Rajesh Tope, and Abhimanyu Pawar, advocated for direct financial assistance of Rs 500 per ton to cover the Fair and Remunerative Price (FRP), akin to what is provided in Punjab and Karnataka.

They urged the government to facilitate loans from the open market with interest subsidies to settle pending dues. Additionally, they requested long-term restructuring of all factory loans as of March 31, 2026, accompanied by a two-year moratorium and a repayment period of 10 to 12 years.

The industry representatives also called for the Chief Minister to lead a delegation to PM Modi and Home and Cooperation Minister Amit Shah to advocate for an increase in the sugar MSP to Rs 4,100 per quintal, an uptick in ethanol prices, the release of Rs 69 crore in overdue interest subsidies for 21 ethanol projects, and directives for banks to extend loans despite short margins.