India’s sugar consumption falls by 2 million tonnes, industry seeks export boost
NFCSF said India’s sugar consumption has fallen by 2 million tonnes to 28 million tonnes, hurting mill finances. It urged the Centre to allow 500,000 tonnes each for sugar exports and ethanol diversion, while raising the MSP to ₹4,100/quintal to reflect higher cane costs.
Pune: India’s domestic sugar consumption has declined by around 2 million tonnes, raising concerns over the financial health of sugar mills, National Federation of Cooperative Sugar Factories Ltd (NFCSF) President Harshwardhan Patil said on Sunday.
Addressing a press conference, Patil said changing consumer preferences, including rising demand for low-sugar and sugar-free products, have reduced household sugar consumption, prompting the industry to seek policy support from the Centre, Lokmat reported.
State Sugar Commissioner Sanjay Kolte and NFCSF Managing Director Prakash Naiknavare were also present at the briefing.
Patil said that while India’s population of around 1.4 billion would normally require annual sugar consumption of about 30 million tonnes, actual domestic consumption has fallen to around 28 million tonnes.
“The decline in sugar consumption is affecting the financial viability of sugar mills. To address this, the government should allow additional sugar exports and increase diversion of sugar for ethanol production,” he said.
The federation has urged the Centre to permit the export of an additional 500,000 tonnes of sugar and allow another 500,000 tonnes to be diverted for ethanol production.
Patil also reiterated the industry’s long-pending demand for an increase in the minimum selling price (MSP) of sugar. He said the MSP has remained unchanged at Rs 3,100 per quintal despite a cumulative increase of Rs 650 per quintal in the Fair and Remunerative Price (FRP) of sugarcane over the past five years.
“The minimum selling price should be revised to at least Rs 4,100 per quintal to reflect rising production costs and improve the financial position of sugar mills,” he said.
Patil said the sugar industry has prepared a 10-year roadmap for the sector and submitted it to the Centre. He said Union Cooperation Minister Amit Shah has constituted a committee to examine the proposals and recommend policy measures for the industry’s long-term development.
Responding to allegations by Swabhimani Shetkari Sanghatana president Raju Shetti regarding the management of the Karmayogi Shankarrao Patil Cooperative Sugar Factory in Indapur, Patil said the factory had been handed over to a private company under a collaborative arrangement after obtaining approval from members at the general body meeting and in accordance with government regulations.
He described the arrangement as the first such collaborative model involving private investment in a cooperative sugar mill in Maharashtra.
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Source : ChiniMandi
