Sugar Industry Faces Issues Due to No MSP Hike: Federation Official
The sugar industry in India is facing challenges due to the Centre’s failure to increase the Minimum Support Price (MSP) of sugar in five years, according to Jaiprakash Dandegaonkar, director of National Federation of Cooperative Sugar Factories Limited. Despite three hikes in sugarcane’s Fair and Remunerative Price (FRP), sugar’s MSP remains unchanged. The industry demands a MSP of at least Rs 41 per kg, citing increased production costs, transportation, and labor charges. Delayed government decisions may lead to working capital issues and debts in the industry.
Chhatrapati Sambhajinagar, Jul 16 (PTI) The sugar industry in the country has been facing problems as the Centre has not increased its Minimum Support Price (MSP) since five years, a sugar units federation representative claimed on Tuesday.
Problems like short margins in working capital, debts may arise in the sugar industry again as the central government does not take fast decisions, National Federation of Cooperative Sugar Factories Limited director Jaiprakash Dandegaonkar told PTI.
“The government has increased the FRP (Fair and Remunerative Price) of sugarcane three times but there is no hike in the MSP of sugar. All state federations have been demanding it for five years, but the government is not thinking positively about it,” he said.
Such policies are posing a problem for the sugar industry, he claimed.
“We are just demanding the cost of production of sugar. We want at least Rs 41 (per kg) as the cost of production. The cost of sugarcane has been hiked, transportation costs have gone up and labour charges have also been increased. But the price of sugar remains the same,” Dandegaonkar said.
Source Link : https://money.rediff.com/news/market/sugar-industry-faces-issues-due-to-no-msp-hike-federation-official/12760620240716
