Sugar MSP Hike to be Decided Soon
Union Minister Pralhad Joshi has assured the West Indian Sugar Mills Association (WISMA) that the Cabinet will decide on increasing the minimum selling price (MSP) of sugar and ethanol prices. Currently, the MSP is set at Rs 31 per kg, while production costs have risen to Rs 41.66 per kg, leading to significant industry losses. WISMA representatives met Joshi to discuss these issues, emphasizing the need for price adjustments to facilitate the upcoming sugar processing season. For further details, you can refer to the full article here.
Pune/ New Delhi: Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi has assured a delegation of The West Indian Sugar Mills Association (VISMA) that a decision on the hike in minimum selling price (MSP) and ethanol prices will be taken by a Cabinet committee. This has raised the hopes of the sugar industry.
The central government had fixed the minimum selling price of sugar at Rs 31 per kg under an ordinance dated February 14, 2019.
The fair and remunerative price (FRP) of sugarcane has increased from Rs 2,750 to Rs 3,400 per tonne in the last five years; But the price of sugar has remained stable.
In fact, the cost of production of sugar is Rs 41.66 per kg. As a result, the sugar industry is facing huge losses.
The sugar industry supplied 73 per cent of ethanol nationally in 2022-23; But the central government imposed restrictions on ethanol production of sugar mills in 2023-24. This has hit ethanol producers hard financially. The increase in processing costs has also increased the cost of ethanol production.
In this context, West Indian Sugar Mills Association (WISMA) President B.S. B. Thombare, executive board member and Renuka Sugars director Ravi Gupta, executive director Ajit Chougule and Maharashtra Cooperative Sugar Mills Association managing director Sanjay Khatal met Joshi in New Delhi recently.
He pointed out the facts and immediately announced an increase of Rs 7 per kg in the minimum selling price of sugar and Rs 5 per litre in ethanol procurement price;
Otherwise, it would be impossible to open factories from November 15 as directed by the Committee of Ministers in the current season, he said. On this, Union Minister Joshi promised to increase the selling price of sugar and ethanol.
Source Link : https://www.thebridgechronicle.com/news/sugar-msp-hike-to-be-decided-soon
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