The Government of Maharashtra, on February 13, 2026, notified regarding the Action Plan for Recovery of Pending FRP Dues from Leased/Partner-Operated Cooperative Sugar Factories.
The following have been stated namely:-
• The Maharashtra government has decided that agencies or companies operating financially distressed cooperative sugar factories must provide a ₹10 crore bank guarantee before receiving a crushing license. If FRP due to sugarcane farmers is not paid on time, the dues with interest will be recovered from this bank guarantee. If necessary, recovery will also be made by attaching the operator’s movable and immovable assets and factory products. The original cooperative factory’s assets will not be attached. Further legal recovery action will be taken if the guarantee amount is insufficient.
• Release of Bank Guarantee:- After completion of the crushing season, if the concerned party submits an FRP No-Dues Certificate confirming full payment of FRP within the prescribed time, the bank guarantee shall be returned.
• Invocation of Bank Guarantee:- If FRP is not paid within the prescribed time and a Recovery Certificate has been issued, the admissible FRP amount along with interest for the delay period shall be paid to sugarcane suppliers from the bank guarantee.
If any amount remains from the bank guarantee after such payment, it shall be refunded upon submission of the FRP No-Dues Certificate after the crushing season ends.
[Notification No. Sasaka-1225/P.No. 192/3-S]
