Increase minimum selling price of sugar to Rs 42/kg, says industry body NFCSF
The National Federation of Cooperative Sugar Factories (NFCSF) has urged the central government to raise the minimum selling price (MSP) of sugar to Rs 42/kg, citing rising Fair and Remunerative Prices (FRP) of sugarcane. NFCSF President Harshvardhan Patil highlighted the collaborative efforts with ISMA to compute sugar production costs and the joint initiative with the NCDC for sugarcane harvesters. NFCSF also secured waivers on penal interest and plans to restructure overdue loans totaling Rs 812 crores.
Industry body National Federation of Cooperative Sugar Factories (NFCSF), which represents the co-operative sugar mills in the country, has requested the central government to increase the minimum selling price (MSP) of sugar by 35% to Rs 42/kg.
The concept of MSP was introduced in 2018 and it was last revised in February 2019 to Rs 31/kg. However, the sugar prices have been ruling higher that the MSP. The ex-mill sugar prices are Rs 36/kg in Maharashtra, while the retail prices rule in the range of Rs 42-44/kg.
“We have urged the centre to increase the MSP of sugar to at lease Rs 42/kg as the Fair and Remunerative Price (FRP) of sugarcane had been steadily going up every year,” said NFCSF in a release.
the President of theHarshvardhanPatil, today urged the centte to increase the MSP of sugar at least to Rs 42 per kg.
The NFCSF has already submitted its proposal to the union government in this regard.
A joint meeting of NFCSF, Directors of the Union Food and Cooperation Ministries & NCDC along with the concerned officials was held in Pune to discuss the various issues of the sugar industry.
“The NFCSF and the ISMA have jointly computed the production cost of sugar on the basis of factual information and credible data they have collected from organisations across India and have sent to the concerned departments of the Union Government on June 3,” said Harshvardhan Pstil, president, NFCSF.
He added, “The NFCSF is optimistic that the roadmap of first hundred days of the Union Cabinet being created on the directive of the Prime Minister Narendra Modi, will take a positive decision on the rise in MSP of sugar.”
Patil said that the NFCSF and National Co-operative Development Corporation (NCDC) are working jointly on a scheme to supply sugarcane harvesters for scientific cutting and prompt transportation of sugarcane. “The sugarcane cutting machines would be made available to cooperative factories as per their crushing capacity. This scheme will benefit them in the new sugarcane crushing season commencing from October 2024,” he said.
The NFCSF claimed that it has succeeded in convincing the Centre to waive off the penal interest of Rs 620 crore and restructure the overdue loan of total Rs 812 crores taken from the Sugar Development Fund by the cooperative sugar factories.
“The repayment of Rs1378 crore was pending due to various reasons.To meet the remaining principal and simple interest of Rs 758 crores, a meeting of all the concerned factories was held today to make available the amount at a concessional rate of interest through NCDC. It has been decided to submit a new proposal to the concerned department,” said Patil adding, “The work of preparing a comprehensive strategic road map for the next 10 years of the country’s sugar industry is currently underway through an expert and professional organization in Mumbai.”
Recommended for you
