Maharashtra sugar mills seek higher sugar MSP, urge centre to raise price to Rs 40 per kg
Maharashtra sugar mills urged the Centre to raise sugar MSP from Rs 31/kg to Rs 40/kg and ethanol prices from Rs 60 to Rs 65/litre, citing rising cane procurement costs. The government is reviewing MSP, ethanol quotas, and possible loan restructuring measures.
Solapur: Sugar mill operators in Maharashtra have urged the Central Government to increase the minimum selling price (MSP) of sugar from Rs 31 per kilogram to Rs 40 per kilogram, arguing that rising sugarcane procurement costs and stagnant sugar prices have placed the industry under severe financial pressure.
The demand was raised during a recent meeting in New Delhi attended by Union Cooperation Minister Amit Shah, Union Agriculture Minister Shivraj Singh Chouhan, Maharashtra Chief Minister Devendra Fadnavis, state ministers and representatives of the sugar industry, Sakal reported.
According to industry representatives, sugar mills are currently facing a significant mismatch between the cost of sugarcane procurement and sugar sale prices. While mills are required to pay the Fair and Remunerative Price (FRP) to farmers and, in many cases, spend more than Rs 3,400 per tonne on sugarcane procurement, the total cost often rises to nearly Rs 4,000 per tonne when other expenses are included.
Industry leaders argue that the economics of sugar production have become increasingly challenging, with sugarcane costs effectively translating to around Rs 40 per kilogram of sugar, while the MSP remains fixed at Rs 31 per kilogram. They claim the resulting gap of nearly Rs 900 per tonne has created a financial strain on mills across the state.
In addition to seeking a higher sugar MSP, the industry has also requested an increase in ethanol procurement prices from Rs 60 per litre to Rs 65 per litre. Sugar mill operators believe that stronger ethanol economics would help improve the financial viability of mills and support India’s expanding biofuel programme.
During the meeting, Amit Shah reportedly acknowledged the need to review and increase the sugar MSP. Discussions were also held on expanding ethanol allocation quotas for sugar mills, with a decision expected within the next two months.
The Centre is also understood to be considering measures related to the restructuring of sugar mill loans and possible relief on interest payments for outstanding debt, proposals that have been welcomed by the industry.
Speaking on the challenges facing the sector, Solapur-based sugar industry representative Sachin Jadhav said that while financial mismanagement at some mills has contributed to delayed farmer payments in certain cases, the broader industry is currently facing genuine economic difficulties.
He argued that an increase in the sugar MSP remains the most effective solution to ease financial pressure on mills, improve liquidity and ensure timely payments to sugarcane farmers.
The demand comes at a time when Maharashtra’s sugar industry is also expanding its role in ethanol production, making pricing policies for both sugar and biofuels increasingly important for the sector’s long-term sustainability.
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Source : ChiniMandi
