Minister Jayant Chaudhary writes to Food Minister, urges to allow sugar export and revise sugar MSP
Rashtriya Lok Dal chief Jayant Chaudhary urged Union Minister Pralhad Joshi to address sugar industry challenges, including delayed cane payments due to falling sugar prices (~₹35/kg, below production cost). He proposed permitting 20 lakh tonnes of sugar exports, revising the Minimum Selling Price (MSP) from ₹31/kg (unchanged since 2019), and addressing rising production costs to sustain the industry and support farmers.
Jayant Chaudhary, Rashtriya Lok Dal (RLD) chief and Minister of State (I/C) for the Ministry of Skill Development and Entrepreneurship (MSDE), has written to Union Food and Consumer Affairs Minister, Pralhad Joshi, highlighting the ongoing challenges faced by the sugar industry, including delayed cane payments to farmers.
In his letter, Chaudhary emphasized the condition of the sugar industry, which might affect the payments to sugarcane farmers.
He noted the declining sugar prices, which have fallen to around ₹35 per kilogram. This price is below the production cost and also lower than the prices at the same time last year.
Given these challenges, Chaudhary has urged the government to permit the export of at least 20 lakh tonnes of sugar, with immediate clearance for 10 lakh tonnes. He believes this move will provide financial relief to the sugar industry, allowing mills to clear dues to farmers on time. Additionally, the export permission would help attract investment for the expansion and modernization of sugar mills.
The letter also calls for a review of the Minimum Selling Price (MSP) of sugar, in light of rising production costs and the need for adequate financial support for the sugarcane industry. A revision of the MSP and the export policy, Singh asserts, could play a crucial role in sustaining the industry and ensuring timely payments to farmers.
In June 2018, the Indian government set the MSP of sugar for the first time at Rs. 29 per kg, when the Fair Remunerative Price (FRP) for sugarcane was Rs. 2,550 per tonne. However, while the FRP has been steadily increasing, the MSP for sugar has remained unchanged since February 2019. The FRP of sugarcane climbed significantly from Rs. 2,550 per tonne in 2017-18 to Rs. 3,400 per tonne in the 2024-25 season. In contrast, the MSP of sugar has remained at Rs. 31 per kg since 2018-19.
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Source : Chinimandi
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