New Delhi: Concerned over mounting cane arrears ahead of Lok Sabha polls, the government on February 14 hiked the minimum selling price of sugar by Rs 2 per kg to Rs 31 to help millers clear farmers’ dues.
The cabinet gave its approval for increase in MSP. Recently a proposal was discussed to hike in MSP in the meeting of CoS.
“We have increased the minimum selling price of sugar from Rs 29 per kg to Rs 31 per kg. This will help millers to make the payment to sugarcane growers,” Food Minister Ram Vilas Paswan told news agency.
The sugar mills in India are in big trouble as they have been choked up with surplus stocks of sugar, low demand in the market.
It was expected that the ruling party would leave no stone unturned to win the confidence of the sugar industry and to achieve this, they doled out a hike in MSP to assist the distressed sugar industry.
According to experts, the announcement of hike in MSP will aid the BJP in Lok Sabha polls as sugarcane growers are one of the major vote banks along with sugar mills.
Industry body ISMA had recently said cane arrears stood at around Rs 20,000 crore at the end of January.
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