Good News for Sugarcane Farmers: Full Payment to Be Made in One Go, Rules High Court

In a major relief for sugarcane farmers across India, the Bombay High Court has delivered a landmark judgment mandating full payment of Fair and Remunerative Price (FRP) to farmers in one single installment. The court declared the Maharashtra Government’s previous resolution—allowing FRP payments in two installments—as illegal and invalid.

High Court Rules in Favor of Farmers:

Sugarcane farmers in major producing states such as Maharashtra, Uttar Pradesh, Karnataka, Uttarakhand, Punjab, Haryana, Andhra Pradesh, Tamil Nadu, Bihar, Gujarat, Odisha, Madhya Pradesh, and Telangana often face delays in receiving their dues. In Maharashtra, FRP was being paid in two phases, creating financial burdens for farmers.
The division bench of Justice G.S. Kulkarni and Justice Abhay M. Sethna of the Bombay High Court stated that this policy violated the Sugarcane (Control) Order, 1966 (SCO) issued by the Central Government.

What Did the Court Say?

The court ruled that sugarcane farmers are entitled to the full FRP set by the Central Government for cane supplied to sugar mills at the beginning of the crushing season.

Full Payment within 14 Days is Mandatory:

According to the Sugarcane (Control) Order, 1966, sugar mills are required to pay farmers within 14 days of sugarcane delivery. However, the Maharashtra Government had introduced a policy allowing FRP payment in two parts, which was challenged in court. Some sugar mills also approached the court on the matter.

Central Government Supported Farmers: While the state government defended its policy, claiming it aligned payments with actual sugar recovery rates and supported the financial health of sugar mills, the Central Government backed the farmers. It emphasized that FRP payments must comply with SCO 1966 and the Maharashtra Sugarcane Price Regulation Act, 2013.

What is FRP?

FRP (Fair and Remunerative Price) is the minimum price set by the Central Government, which sugar mills must pay to farmers for the sugarcane they procure. The FRP system was introduced in 2009 to ensure that farmers receive fair compensation for their produce.

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