Sugar bodies seek hike in MSP to Rs 42 per kg
The National Federation of Cooperative Sugar Factories (NFCSF), led by Harshvardhan Patil, has proposed raising the minimum selling price (MSP) of sugar from Rs 31 to Rs 42 per kg to address rising production costs and the increasing fair and remunerative price (FRP) of sugarcane. The proposal, submitted on June 3, was discussed with Union and NCDC officials. The NFCSF has also resolved issues like utilizing molasses for ethanol production and restructuring overdue loans.
The National Federation of Cooperative Sugar Factories (NFCSF) has proposed a rise in the minimum selling price (MSP) of sugar from Rs 31 to Rs 42 per kg. The proposal was put forward by Harshvardhan Patil, president of NFCSF.
The announcement was made during a joint meeting of NSCSF, directors of Union Food and Cooperation, ministers and the National Cooperative Development Corporation (NCDC). The proposal was submitted to the Centre on June 3, 2024 and focuses on addressing the rising fair and remunerative price (FRP) of sugarcane and the increasing production cost of sugar, ensuring the industry’s viability.
Addressing a press conference, Patil said, “The issue of increase in the MSP of sugar has been pending for a long time. The NFCSF and the Indian Sugar Mills Association (ISMA) have jointly computed the production cost of sugar backed by credible data that they have piled up from organisations across the country and forwarded to the concerned departments of the Union Government. After studying the data, we have concluded that the production cost of sugar is steadily increasing. Considering the rising expenses across different regions, the cost of cane-FRP in Maharashtra is Rs 3,599 per metric ton of cane, with total conversion costs reaching Rs 3,723 per quintal of sugar. The production cost for Maharashtra for the 2024-2025 session is estimated at Rs 4,145 per quintal, emphasising the necessity of MSP hike.’’
“NFCSF succeeded in resolving several issues of the cooperative sugar factories and the sugarcane farmers, including the government’s decision of April 24, allowing sugar mills to utilise 7 lakh tons of B-Heavy molasses for production of ethanol and overhauling Rs 813 crore in overdue loans,” he added.
He also expressed optimism regarding a positive decision on the MSP increment from the Union Cabinet within its first hundred days.
The central government has not hiked the MSP of sugar since 2019.
Source Link : https://indianexpress.com/article/cities/pune/factories-federation-proposes-hike-sugar-rs-42-per-kg-9393300/
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