Crisis Looms in Indian Sugar Sector: NFCSF Urges Government Intervention
The National Federation of Co-operative Sugar Factories (NFCSF) has warned of an impending crisis in India’s sugar industry, citing financial stress from high inventories and rising production costs. In a plea to the Union Food Secretary, NFCSF called for government intervention to address the gap between increased Fair and Remunerative Prices (FRP) and stagnant Minimum Selling Prices (MSP). The sector also faces challenges with the Ethanol Blending Programme due to government restrictions and unadjusted ethanol prices, threatening the industry’s economic viability.
The National Federation of Co-operative Sugar Factories has warned of an impending crisis in the sugar sector, citing financial stress due to high sugar stocks and rising production costs. They’ve urged government action to prevent collapse, highlighting issues with pricing and ethanol allocation impacting economic viability.
The National Federation of Co-operative Sugar Factories (NFCSF) has issued a stark warning regarding the troubling state of the sugar industry. The sector faces severe financial stress from inventory surpluses and surging production costs, prompting NFCSF to urge governmental intervention.
In an urgent plea to the Union Food Secretary, the federation highlighted discrepancies between increased Fair and Remunerative Prices (FRP) and stagnant Minimum Selling Prices (MSP), despite a significant rise in production costs. NFCSF revealed that the industry is struggling to sustain operations, with substantial funds required for farmer payments and factory operations.
Compounding the crisis is a decline in contributions to the Ethanol Blending Programme, linked to recent government restrictions. Despite higher FRP levels, ethanol pricing hasn’t seen an adjustment, affecting economic sustainability. The NFCSF calls for an immediate revision of ethanol prices to revitalize the sector.
Source Link : https://www.devdiscourse.com/article/business/3150313-crisis-looms-in-sugar-sector-nfcsf-urges-government-intervention
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