NFCSF demands hike in sugar price; submits proposal backed by data
“Harshvardhan Patil, President of NFCSF, urged an increase in the Minimum Selling Price (MSP) of sugar to Rs 42 per kg to offset rising production costs. The NFCSF’s proposal, backed by comprehensive data, was submitted to the Union government. Patil highlighted initiatives including the use of B-heavy molasses for ethanol production, financial measures aiding cooperative sugar factories, and collaboration on sugarcane harvesters, aligning with the upcoming crushing season.
In a significant push to address the rising production costs in the sugar industry, Harshvardhan Patil, President of the National Federation of Cooperative Sugar Factories (NFCSF), has advocated for an increase in the Minimum Selling Price (MSP) of sugar to Rs 42 per kg.
During a press conference and various meetings involving key stakeholders and government officials, Patil emphasized the steady increase in the Fair and Remunerative Price (FRP) of sugarcane, underscoring the viability of the sugar industry if the MSP is adjusted accordingly.
The NFCSF has formally submitted its proposal to the Union government, backed by comprehensive data demonstrating a rise in production costs. This proposal was addressed in a joint meeting with directors from the Union Food and Cooperation Ministries and the National Cooperative Development Corporation (NCDC) in Pune.
Patil expressed optimism regarding the new Union Cabinet’s initial 100-day roadmap, influenced by directives from Prime Minister Narendra Modi, which he believes will favorably resolve the MSP increase. This issue, he noted, has been pending for a long time despite the federation’s efforts and collaboration with the Indian Sugar Mills Association (ISMA) to provide factual and credible production cost data to the government.
Further discussions revealed that the NFCSF has been instrumental in resolving several challenges faced by cooperative sugar factories. Notably, a government decision on April 24 authorized the use of 7 lakh ton B-heavy molasses for ethanol production, benefiting both sugarcane growers and sugar factories.
Additionally, the NFCSF and NCDC are collaborating on a scheme to provide sugarcane harvesters for efficient harvesting and transportation, aligning with the upcoming sugarcane crushing season starting in October 2024. This initiative is expected to enhance productivity based on the factories’ crushing capacities.
Patil also highlighted financial measures taken to aid cooperative sugar factories, including the waiver of penal interest amounting to Rs 620 crore and the restructuring of overdue loans totaling Rs 812 crore from the Sugar Development Fund. A strategy to manage the repayment of Rs 1378 crore, with provisions for concessional interest rates, is underway.
The NFCSF has seen significant organizational developments, with a new board of directors elected for a five-year term starting February 16, 2024.
The board, representing cooperative sugar factories nationwide, met with Union Home and Cooperation Minister Shri Amit Shah to discuss strategic plans for the next decade of India’s sugar industry. This meeting set the stage for a comprehensive roadmap currently being developed in collaboration with professional experts based in Mumbai.
Patil commended the Cooperation Minister’s role in strengthening the cooperative movement and the sugar industry across India, marking a proactive approach towards sustainable and profitable sugar production.
The Managing Director of the NFCSF, Prakash Naiknavare was also present in the Press meet.
Source Link: https://www.indiancooperative.com/from-states/nfcsf-demands-hike-in-sugar-price-submits-proposal-backed-by-data/
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