India set to decide on sugar selling price, ethanol
India will soon decide on increasing the minimum selling price (MSP) for sugar and finalize ethanol policies for the next season. The sugar industry seeks a higher MSP to ensure timely payments to farmers. Improved production outlook and increased sugarcane acreage are expected to support better planning and policy formulation.
MUMBAI: India will make a decision on sugar industry calls for a hike in the minimum selling price (MSP) in the coming days, a senior government official says, adding that ethanol policies will be set before the start of the next season.
India, the world’s largest sugar consumer, restricted the use of sugar in ethanol production during the 2023/24 marketing year that ends on Sept 30 and also prohibited exports to keep a lid on domestic prices.
“We are discussing the MSP (proposal). In the coming days, we will hopefully take a call,” food secretary Sanjeev Chopra told reporters during a conference.
The sugar-processing industry has been demanding an increase in the minimum selling price, saying the government has raised the mandatory procurement price of sugarcane in recent years while the MSP has remained unchanged since 2019.
Industry bodies said a higher MSP would enable them to make timely payments to millions of sugarcane farmers in the upcoming season starting on Oct 1.
Chopra said the production outlook for the next season has improved due to good monsoon rainfall and increased sugarcane acreage.
This will allow the government to formulate policies for the next year. The sugarcane area has edged up to 5.77 million ha from 5.7 million ha a year ago, farm ministry data showed.
“We should be having very healthy stocks at the end of the present sugar season, which would allow us to have better planning of its diversion in the next year,” Chopra said, referring to sugar’s use in ethanol production.
Source Link : https://www.thestar.com.my/business/business-news/2024/07/29/india-set———————to-decideon-sugar-selling-price-ethanol
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