Govt mulls hike in sugar MSP, ethanol prices; exports under review
The government is considering increasing ethanol prices, raising the minimum selling price (MSP) of sugar, and reviewing sugar exports for the 2024-25 season, according to Food Minister Pralhad Joshi. Ethanol prices, which have remained unchanged since 2022-23, may soon be revised. Joshi emphasized favorable sugar production prospects due to good monsoons, while industry leaders urged for higher MSP and export allowances.
The government is considering increasing ethanol prices, raising minimum selling price (MSP) of sugar, and reviewing sugar exports for the 2024-25 season, Food Minister Pralhad Joshi said on Thursday.
”The petroleum ministry is seized of the matter. We are in touch with petroleum ministry. It is well under consideration to hike the ethanol price,” Joshi told reporters on the sidelines of an industry conference here. Regarding sugar exports, Joshi stated, ”We will take a decision after looking into next year’s production and availability of sugar.” The minister also said a committee of secretaries is deliberating on a proposal to increase the minimum selling price of sugar, which has remained unchanged at Rs 31 per kg since February 2019 .
Joshi was optimistic about sugar production for the 2024-25 season starting October, citing favourable monsoon conditions. Ethanol prices, set by the government, have not been raised since the 2022-23 ethanol supply year (November-October). Current rates of ethanol produced from cane juice, B-Heavy molasses, and C-Heavy molasses are Rs 65.61, Rs 60.73 and Rs 56.28 per litre, respectively. The food minister highlighted that the introduction of sugar MSP in 2018 has significantly reduced cane dues to farmers, with about 99 per cent of Rs 1.14 lakh crore paid.
India’s sugarcane cultivation area has increased by 18 per cent to 6 million hectares in the last decade, with production up 40 per cent to 491 million tonne, Joshi added. Speaking on the occasion, Food Secretary Sanjeev Chopra said the sugarcane crop outlook for 2024-25 is ”very good” due to favourable monsoon conditions. In his welcome address, industry body ISMA President M Prabhakar Rao requested the government to increase the sugar MSP to at least Rs 39 per kg and allow exports of 2 million tonne. ISMA has projected gross sugar output at 33.9 million tonne in the 2024-25 season (October-September) with upward revision looking into good monsoon.
With diversion of 4-4.5 million tonne for ethanol production and a closing stock of 8.3 million tonne, there will be 2 million tonne available for exports in the 2024-25 season. ”Exports should be allowed immediately as the global prices have firmed in the last two weeks on reports of likely drop in Brazil crop. We can regain the lost market,” ISMA Vice President Gautam Goel added.
Source Link : https://www.moneycontrol.com/news/business/govt-mulls-hike-in-sugar-msp-ethanol-prices-exports-under-review-12830418.html
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