Sugar millers urge govt to increase sugar prices to 42 Rs per kg for commercial industries
BJP MP Dhananjay Mahadik has urged the Central government to increase the sugar price to ₹42 per kg, as stakeholders in the sugar production industry face financial difficulties despite increased payments to sugarcane farmers. The Minimum Selling Price of sugar has been stagnant at ₹31 per kg for five years. Mahadik also requested a subsidy of ₹1 per unit of power generated through bagasse, currently procured at ₹4.65 per unit, to support sugar mills.
Kolhapur: BJP’s Rajya Sabha MP Dhananjay Mahadik stated that stakeholders in the sugar production industry have requested the Central government to increase the price of sugar used indirectly in products like bakery items and soft drinks to ₹42 per kg. For the past five years, the Minimum Selling Price (MSP) of sugar is stagnant at ₹31 per kg, reports Times of India.
Despite the Union government’s yearly increase in payments to sugar cane farmers, sugar mills are facing financial difficulties due to a lack of floating capital necessary for operations. The MP explained that 75% of sugar produced is sold to commercial industries, while the remaining 25% is sold directly to consumers through retailers.
“The sugar price needs to be revised to ensure the mills do not fall further into a debt trap,” Mahadik stated. “Millers have demanded an increase in the price of sugar sold to factories that produce candies, condiments, and soft drinks.” Mahadik, who also operates a sugar factory in Solapur district, emphasized the necessity of this price revision.
Additionally, Mahadik called for the Central government to grant a subsidy of ₹1 per unit of power generated through bagasse by the sugar mills. Currently, the government procures bagasse-based power at ₹4.65 per unit.
Source Link : https://www.chinimandi.com/sugar-millers-urge-govt-to-increase-sugar-prices-to-42-rs-per-kg-for-commercial-industries/
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