Maharashtra: Sugar mills seek Rs 4,100 per quintal price, Rs 500 support for FRP in Maharashtra
Maharashtra sugar mills demanded raising sugar MSP from ₹3,100 to ₹4,100/quintal after higher sugarcane FRP increased production costs. Mills also sought better ethanol prices and ₹500/tonne FRP support. The state formed a committee to review sector challenges before the next crushing season.
Kolhapur: Sugar mills in Maharashtra have called for an increase in the minimum selling price of sugar to ₹4,100 per quintal, saying that the recent rise in sugarcane prices without a matching increase in sugar rates could put the industry under financial strain.
The demand comes after the central government raised the fair and remunerative price (FRP) for sugarcane this year. Mill operators say that while the higher FRP benefits farmers, the absence of a hike in sugar prices could lead to losses for mills. At present, the minimum selling price of sugar is ₹3,100 per quintal, Sakal reported.
In addition, the industry has sought better pricing for ethanol. Mill representatives have asked for ₹72 per litre for ethanol produced from sugarcane juice and syrup, and ₹67 per litre for ethanol made from B-heavy molasses.
Mill operators have also urged the government to provide financial assistance of ₹500 per tonne towards FRP payments, similar to the support offered in Punjab.
To address the challenges faced by the sugar sector, the state government has formed a committee of senior officials from the finance, agriculture, cooperation, marketing and industries departments. The panel is studying the situation and suggest measures, though industry representatives say timely discussions are needed before the next crushing season begins.
Industry members have also responded to concerns that a rise in sugar prices could affect consumers. They say only about 25 per cent of sugar is used for household consumption, while the majority is consumed by industries such as beverages, sweets and pharmaceuticals.
Chandradeep Narke, MLA and chairman of the Kumbhi-Kasari Cooperative Sugar Mill, said that while the increase in FRP is a positive step, the combined cost of sugarcane and production means that sugar prices should be at least ₹4,500 per quintal for mills to remain viable.
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Source : ChiniMandi
