Jayant Chaudhary, Rashtriya Lok Dal (RLD) chief and Minister of State (I/C) for the Ministry of Skill Development and Entrepreneurship (MSDE), has written to Union Food and Consumer Affairs Minister, Pralhad Joshi, highlighting the ongoing challenges faced by the sugar industry, including delayed cane payments to farmers.
In his letter, Chaudhary emphasized the condition of the sugar industry, which might affect the payments to sugarcane farmers.
He noted the declining sugar prices, which have fallen to around ₹35 per kilogram. This price is below the production cost and also lower than the prices at the same time last year.
Given these challenges, Chaudhary has urged the government to permit the export of at least 20 lakh tonnes of sugar, with immediate clearance for 10 lakh tonnes. He believes this move will provide financial relief to the sugar industry, allowing mills to clear dues to farmers on time. Additionally, the export permission would help attract investment for the expansion and modernization of sugar mills.
गन्ना किसानों के हितों हेतु सदैव संकल्पित माननीय श्री @jayantrld जी #SugarCaneExport#MSP#Kisan pic.twitter.com/8a2lPa0SN8
— Rashtriya Lok Dal (@RLDparty) January 17, 2025
The letter also calls for a review of the Minimum Selling Price (MSP) of sugar, in light of rising production costs and the need for adequate financial support for the sugarcane industry. A revision of the MSP and the export policy, Singh asserts, could play a crucial role in sustaining the industry and ensuring timely payments to farmers.
In June 2018, the Indian government set the MSP of sugar for the first time at Rs. 29 per kg, when the Fair Remunerative Price (FRP) for sugarcane was Rs. 2,550 per tonne. However, while the FRP has been steadily increasing, the MSP for sugar has remained unchanged since February 2019. The FRP of sugarcane climbed significantly from Rs. 2,550 per tonne in 2017-18 to Rs. 3,400 per tonne in the 2024-25 season. In contrast, the MSP of sugar has remained at Rs. 31 per kg since 2018-19.
Currently, the government has imposed restrictions on sugar exports. Earlier, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) also appealed to the government to allow the export of sugar during the ongoing season.
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