The sugar mills body, West Indian Sugar Mills Association (WISMA), met with Pralhad Joshi, Union Minister of Consumer Affairs, Food and Public Distribution, to discuss the important issues impacting the sugar industry. The association highlighted the need to raise the Minimum Selling Price (MSP) of sugar and the ethanol purchase price.
According to the WISMA, the Government established a nationwide MSP for sugar at Rs. 31 per kg on February 14, 2019. Despite the Fair and Remunerative Price (FRP) of sugarcane increasing from Rs. 2,750 to Rs. 3,400 per tonne over the past five years, the sugar MSP has remained stable. WISMA pointed out that the production cost of sugar at the national level stands at Rs. 41.66 per kg, leading to substantial losses for sugar mills.
Additionally, the sugar industry accounted for 73% of the national ethanol supply in the ethanol supply year (ESY) 2022-23. However, in the current ESY, the sector faces financial impact due to central government restrictions on ethanol production. The FRP for sugarcane has also risen from Rs. 3,150 for the 2023-24 season to Rs. 3,400 for the 2024-25 season.
According to the press release, on October 28, 2024, B.B. Thombare, President of the WISMA, along with Executive Committee Member of WISMA and Director of Renuka Sugars, Ravi Gupta, Executive Director Ajit Chougule, and Managing Director of the Maharashtra Cooperative Sugar Factory Federation, Sanjay Khatal met with Food Minister, in New Delhi. They presented these issues to the minister, highlighting the severe financial blow to sugar mills, making it difficult to start operations from November 15, 2024, as directed by the Maharashtra State Minister’s Committee.
WISMA in a press release stated that in light of these challenges, the industry leaders urged the government to announce an immediate increase in the minimum selling price of sugar by Rs. 7 per kg and the ethanol purchase price by Rs. 5 per litre from oil marketing companies (OMCs). Thombare emphasized that without the price increase, sugar mills would be unable to begin the crushing season as scheduled. According to the press release, on this, the Minister assured recommendation to the Union Cabinet Committee and promised to increase the price of sugar and ethanol.
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