Pune: Sugar millers are calling for an increase in the Minimum Selling Price (MSP) for sugar to Rs 3700 per quintal following the central government’s decision to raise the Fair and Remunerative Price (FRP) for sugarcane.
Expressing concerns over the financial distress faced by the sugar sector, millers argue that raising the MSP is important for the industry’s survival. However, the government has yet to take concrete action in this regard, prompting millers to demand an MSP hike.
B B Thombare, Chairman of Natural Sugar & Allied Industries and industry expert said that his firm has done business of Rs 950 crore and paid Income Tax and GST worth Rs 82.82 crore for 2022-23.”
Every year, all the sugar mills in the country contribute millions of rupees in taxes to the government. He said, “While taking any decision, government should look at the welfare of sugar mills. The current sugar MSP needs to be increased up to Rs 3700 per quintal.”
Sugar producers are urging the government to increase the MSP of sugar in line with the rise in FRP. This move would ensure that farmers receive a fair price for their sugarcane and help the industry remain financially viable.
The FRP of sugarcane climbed significantly from Rs. 2550 per ton in 2017-18 to Rs. 3150 per ton for 2023-24 season. On the other hand, the MSP of sugar has remained at Rs. 31 per kg since 2018-19. The sugar industry has been struggling financially due to the increase in FRP and other cost elements that have raised the cost of production of sugar.
