Devendra Fadnavis defends levy on sugarcane mills, says it won't impact farmers

Leaders from the Opposition, however, have alleged that the decision will adversely affect farmers.

Ahilyanagar: Maharashtra Chief Minister Devendra Fadnavis on Sunday hit out at Opposition leaders criticising the state government's decision to impose a levy on sugarcane mills, asserting that the contribution would come from their profits and not from farmers' earnings.

In view of the heavy rainfall and flood-related losses across parts of the state, the government last week announced that it would impose a levy of Rs 10 per tonne of sugarcane on mills for the Chief Minister's (CM) Relief Fund and Rs 5 per tonne for assistance to flood-affected farmers.

Speaking at an event at a sugar factory, Fadnavis said, "There are around 200 mills in the state. One mill may have to contribute about Rs 25 lakh to the CMRF. We are seeking funds from the profits of sugar mills, not from farmers."

He slammed those criticising the decision, saying they were misinterpreting it.

"Some people have stooped so low that they are portraying this as the government taking money from farmers. The fact is that the contribution is from the profits of the mills and will go to flood-hit farmers in Marathwada. Some mills have even been found cheating farmers in tonnage. I will show them the mirror," the chief minister said.

Former union minister and NCP (SP) president Sharad Pawar, on Sunday, however, criticised the move, saying he was "surprised" by the government's decision. "I am surprised that the Maharashtra government decided to charge an extra levy from sugarcane cultivators to provide financial assistance to Marathwada farmers hit by floods. I hope the state government changes its decision," Pawar said.

The government had said that the Fair and Remunerative Price (FRP) for the 2024-25 season has been fixed at Rs 3,550 per metric tonne with a basic recovery rate of 10.25 per cent. Around 200 sugar mills, including 99 cooperative and 101 private ones, crushed cane worth Rs 31,301 crore, with 99.06 per cent of FRP already disbursed.

Several farm leaders, including Raju Shetti, Congress MLC Satej Patil and NCP (SP) MLA Rohit Pawar, have opposed the levy, calling it "unfair" and a "financial burden".

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