New Delhi: The central government announced an increase in the Fair and Remunerative Price (FRP) for sugarcane, a decision that is set to benefit sugarcane farmers across the country. The move has now prompted the sugar industry to demand hike in the Minimum Support Price (MSP) for sugar.
In June 2018, the Indian government fixed the MSP of sugar, for first time, at Rs. 29 per kg when the FRP of sugarcane was Rs. 2550 per ton. However, the FRP has been steadily increasing, while the MSP of sugar has remained unchanged since February 2019.
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.
Speaking to Chinimandi, Raje Samarjeetsinh Ghatge, Chairman of Maharashtra-based Chhatrapati Shahu Sahakari Sugar Factory and a BJP leader, expressed his appreciation for the government’s decision to increase the FRP for sugarcane. However, he also urged the government to raise the MSP for sugar. Ghatge emphasized the need for a minimum Rs 400 per quintal increase in the MSP, which would provide much-needed financial relief to sugar mills.
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.
Recently, Indian Sugar Mills Association (ISMA) had urged the government to increase the MSP of sugar from the current level of Rs 31 per kg to Rs 38 per kg in line with FRP of cane.
In an communication to Food Ministry, ISMA had also stated that Commission for Agricultural Costs and Prices (CACP) and other expert bodies like Group of Ministers, Committee of Secretaries, Niti Aayog, and various state governments have recommended for increase in the MSP of sugar to appropriate level duly considering the increase in FRP of sugarcane. Hike in MSP would enable the sugar mills to make timely payment to the sugarcane farmers.
