Sugar industry urges Centre to raise MSP, hike price of ethanol
The Indian Sugar Mills Association has urged the government to increase ethanol prices and reduce taxes on Flex Fuel Vehicles. They also demand raising the minimum selling price of sugar from Rs 31 per kg. Food Secretary Sanjeev Chopra noted better production due to a good monsoon, while the food minister mentioned possible price hikes for ethanol and sugar.
NEW DELHI: The Indian Sugar Mills Association has urged the Centre to revise and increase ethanol prices along with the rationalisation and reduction of tax imposed on Flex Fuel Vehicles. It also raised a demand to increase the MSP or the minimum selling price of sugar from the existing Rs 31 per kg.
The association has projected that sugar production for current year is expected to be 33.3 million tonnes. Addressing the Sugar Summit, food secretary Sanjeev Chopra said better production is expected this year because of the good monsoon.
“Sugar prices in India have been stable and cane arrears for farmers is at the lowest. Nearly 97% of cane due has been cleared. We are looking at overall blending for the current year at 15 per cent,” Chopra added.
Meanwhile, the food minister on Thursday announced that India is considering raising domestic prices of ethanol and sugar, as the country seeks to boost local supplies. India is one of the world’s biggest sugar producer, second only to Brazil, and is planning to extend a sugar export ban and raise the price at which oil companies buy ethanol from sugar mills.
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