Government contemplates MSP for sugar

The government will take into account the demand for increased minimum sale prices (MSP) of sugar from mills in line with the fair and remunerative price (FRP) of sugarcane paid to farmers. “We are hoping to find a solution. The Indian Sugar Mills Association (Isma) has been pressuring the government to raise the millers’ MSP for sugar and raise FRP prices in tandem for a number of years.

On Wednesday, the government decided to increase the FRP of sugarcane by 8% to Rs 340 per quintal, which will be paid to farmers for the 2024–25 season (October–September).. The government increased sugarcane FRP by just 3% the previous year.

According to Isma, the industry will pay an extra Rs. 10,000 crore to the 50 million cane growers as a result of the increase in FRP. The country’s sugar production in the 2023–24 season is probably going to be higher than its prior prediction of 32.5 while domestic consumption is expected to be roughly 28.5 at last month.

The 2022–2023 sugar yield, excluding diversion for ethanol production, was 36.61. In January 2024, the retail inflation rate for sugar was 7.51%. The government’s decision to raise the FRP of sugarcane caused a little fall in the stock prices of some of the biggest sugar companies on Thursday.

Leave a Reply

Your email address will not be published. Required fields are marked *