Maharashtra CM Devendra Fadnavis defends sugarcane levy, assures farmers won’t bear costs of Marathwada floods

Maharashtra Chief Minister Devendra Fadnavis on Sunday (October 5) hit out at opposition leaders criticizing the state government’s decision to impose tax on sugarcane mills, saying the contribution would come from their profits and not farmers’ income.

Given the heavy rainfall and flood losses in parts of the state, the government announced last week that it would impose a levy of ₹10 per tonne of sugarcane in the mills for the Chief Minister’s (CM) relief fund and ₹5 per tonne for aid to flood-affected farmers.

Opposition leaders, however, said the move would have negative consequences for farmers.

Speaking at a sugar mill event, Fadnavis said, “There are around 200 mills in the state. ₹25 lakh to CMRF. We are seeking funds from the profits of the sugar mills, not from the farmers.” He lashed out at those critical of the decision, saying they were misinterpreting it.
“Some people have fallen so low that they are describing this as the government taking money from farmers. The fact is that the contribution comes from the profits of the factories and will go to the flood-affected farmers in Marathwada. Some factories have even been found cheating farmers on tonnage. I will show them the mirror,” the chief minister said.

Former union minister and NCP (SP) president Sharad Pawar, however, criticized the move on Sunday, saying he was “surprised” by the government’s decision.

“I am surprised that the Maharashtra government has decided to impose additional cess on sugarcane farmers to provide financial assistance to flood-affected farmers in Marathwada. I hope the state government changes its decision,” Pawar said.

The government had declared that the Fair and Remunerative Price (FRP) for the 2024-25 season has been set at ₹3,550 per tonne with a base recovery rate of 10.25%. Around 200 sugar mills, including 99 cooperatives and 101 private ones, are worth crushed cane ₹31,301 crore, with 99.06% of the FRP already disbursed.

Several farmer leaders, including Raju Shetti, Congress MP Satej Patil and CPN (SP) MP Rohit Pawar, have opposed the levy, calling it “unfair” and a “financial burden”.

The state government, however, maintained that the move was necessary to ensure immediate relief to flood-affected families in Marathwada.