Buying · 1 Nov 2026

Sugar ERP for Maharashtra mills: FRP, revenue sharing, reporting

A sugar ERP for Maharashtra mills must pay FRP within 14 days of delivery, then work out the further price under the 2013 Act's revenue-sharing rule and pay the balance as a second step. It must also hold the records the Commissioner for Sugar checks each season, starting with full FRP payment for the crushing licence.

Why Maharashtra needs its own check

A sugar ERP for Maharashtra mills has to handle three things that other states treat differently. Roughly half the mills are cooperatives. A state Act adds a revenue-sharing price on top of FRP. The crushing licence ties each new season to the dues of the last.

The 2026-27 season shows the pace. The state set 15 October as the start date on 9 September, and applications for licences were reported open from 1 to 30 September. Your data has to be ready for a tight window.

Cooperative share in Maharashtra

ChiniMandi reported on 30 October 2026 that 106 cooperative and 107 private mills applied for 2026-27 crushing licences. So a vendor's Maharashtra experience has to cover both. A cooperative needs share records, member deductions and AGM lists. A private or group mill may need several plants on one ledger, and a leased cooperative needs its lease agreement on file, as described below.

FRP rules in Maharashtra

FRP for 2026-27 is Rs 365 per quintal at 10.25% recovery. It moves by Rs 3.56 for each 0.1% of recovery, with a floor of Rs 338.30 at 9.5% and below. Section 5 of the Maharashtra Regulation of Sugarcane Price (Supplied to Factories) Act, 2013 adds the local rules.

Section 5(1) requires FRP within 14 days of receipt of cane.
Section 5(2) bases payment on recorded weight at the factory.
Section 5(4) requires payment through the farmer's bank account only.
Clause 3(3A) of the central Order sets 15% interest on delay.

Instalments and H&T

In March 2025 the Bombay High Court quashed the state's February 2022 resolution, which split FRP into two instalments. The court said FRP rests on the prior season's recovery, and that any final price is a separate exercise after FRP is paid. We could not confirm whether an appeal is pending, so check with your counsel. Your ERP should still let you change this by dated rule.

Factories in the state arrange harvest and transport and deduct the cost from FRP. Harvester-cut cane adds another rule. A state resolution of 12 October 2022 allows a flat 4.5% weight deduction, and an April 2025 Commissionerate circular told factories not to deduct trash from harvester owners' bills. Keep the farmer's bill and the contractor's bill as separate calculations.

Revenue sharing under the 2013 Act

Section 4(a) lets the Sugarcane Control Board decide a price in addition to FRP. Where the price rests on sugar and by-products (bagasse, molasses and press mud), it is 70% of ex-mill value. Where it rests on sugar alone, it is 75% of ex-mill value of sugar.

Section 5(3) makes payment a two-step process. FRP comes first. The balance follows the half-yearly ex-mill prices determined for section 4(a).

A June 2025 Bombay High Court judgment describes Rule 9 of the 2014 Rules. Each factory submits detailed accounts of crushing and sale realisation in the Board's format, certified by its statutory auditors. It keeps records in the form the Board specifies, and actual harvesting and transport cost is deducted. The same case shows that format lines can change by year.

Sugar Commissioner reporting

The table lists duties we could verify. Formats change, so get the current one from the Commissionerate before you test any system.

Requirement	Basis	Records the ERP must hold
Crushing licence	Conditions reported for 2026-27	Last season's FRP paid in full, government fees and loans cleared, pollution certificate, registered agreement for leased or partnership mills
Cane availability	Maha Us Nondani portal, Circular 240 of 16 May 2024	Cane data in the set format. Mills that did not file were told they would not get a 2024-25 licence.
Revenue-sharing accounts	Rule 9, 2014 Rules	Crushing, sale realisation and by-product figures, certified by auditors
Cane dues position	Clause 9(aa), central Order	Purchases, price due, price paid and arrears, within seven days of a fortnight's close if the Centre so directs
Unclaimed cane price	Clause 3(7), central Order	Amounts unclaimed, passed to the Collector within three months of the sugar year's close

What happens on default

In September 2026, ChiniMandi reported a review that found 30 mills owing Rs 194 crore in 2025-26 FRP, with 15 facing recovery proceedings. Mills without cleared dues were told they would not get licences. On default, a revenue recovery certificate lets district authorities attach sugar stock. A mill needs a live view of unpaid deliveries by age, and pledged stock marked clearly.

Checklist: sugar ERP for Maharashtra mills

Bill FRP at last season's recovery and show the premium steps
Pay through bank accounts only, with no cash path in the system
Show each delivery's 14-day date and delay interest
Deduct H&T from the farmer's bill and tie it to the contractor's bill
Apply the 4.5% harvester rule to farmers' cane only
Calculate a revenue-sharing price on your own year's figures
Pay the second step and post it to each farmer's ledger
Print the licence evidence: FRP paid, fees cleared, documents on file

How SugarOS fits

SugarOS is a sugar mill ERP covering survey to ledger, plus distillery, cogeneration, HR, payroll, fleet, assets, documents and shareholders. Mills enter FRP and revenue-sharing rates as dated, approved rules, and a season true-up works from real recovery. It has no per-user licence fees. Check its Commissioner outputs against your current formats, as you would with any vendor.

Frequently asked questions

What is the revenue-sharing formula in Maharashtra?

Under section 4(a) of the 2013 Act, the Board works with 70% of ex-mill value of sugar and by-products, or 75% of ex-mill value of sugar alone. The Act treats this as a price in addition to FRP, paid in a second step.

Can a Maharashtra mill pay FRP in instalments?

The Bombay High Court quashed the state's 2022 instalment resolution in March 2025. It left room for a written agreement under clause 3(3). Check the current position with your counsel.

What stops a mill getting a crushing licence?

Reported conditions for 2026-27 include full payment of last season's FRP, cleared government fees and loans, a pollution certificate, and a registered agreement for leased mills.

Which recovery applies to the FRP bill?

The Bombay High Court record describes mill-wise FRP based on the previous season's recovery. Any final price for the current season is worked out separately.

Sources

Talk to SugarOS