Role of Farmers' Movements in Determining Sugarcane Pricing in Maharashtra: An Economic and Institutional Analysis

Abstract:

Sugarcane is one of the most important commercial crops in Maharashtra and plays a central role in the rural economy, cooperative sugar industry, and farmers’ livelihoods. Although sugarcane prices in India are centrally determined through the Fair and Remunerative Price (FRP) mechanism, farmers often face serious challenges due to delayed payments, accumulation of arrears, and weak enforcement by sugar factories. These issues have led to repeated dissatisfaction among farmers and the emergence of organized farmers’ movements across sugarcane-growing regions of the state. The present study examines the role of farmers’ movements in the sugarcane sector of Maharashtra from an economic and institutional perspective. The study is based entirely on secondary data drawn from official sources such as reports of the Commission for Agricultural Costs and Prices (CACP), the Commissionerate of Sugar, Maharashtra, Lok Sabha replies, and published documents for the period 2015–2025. The analysis focuses on trends in FRP, payment delays, arrears, and compliance performance, with special reference to cooperative sugar factories and the Kolhapur district. The findings show that while farmers’ movements do not directly determine sugarcane prices, they play a significant role in strengthening the enforcement and effective realization of FRP. Empirical evidence indicates a substantial reduction in payment arrears and delays in districts where farmers’ organizations are active and organized. The study concludes that farmers’ movements function as important institutional pressure groups that improve accountability, payment discipline, and implementation of pricing policies in the sugarcane sector of Maharashtra.