With the start of the sugar season 2024-25, the sugar industry is urging the government to increase the Minimum Selling Price (MSP) of sugar in the new season, stating that it will help initiate sugar mill crushing operations in November 2024 and ensure cane payments to farmers without hindrance. Otherwise, millers will be compelled not to start the crushing operations in the season.
The West Indian Sugar Mills Association (WISMA) has written to Union Food Minister Pralhad Joshi, requesting an increase in the sugar MSP. In the letter, WISMA stated, “We would like to bring your immediate kind attention towards upward revision of sugar MSP of Rs. 31 per kilo since sugar season 2018-19 notified on 14th February, 2019, every year upward revision in raw material sugarcane is substantiated by way of FRP of sugarcane increased from Rs. 275 to 340 per quintal for season-2024-25. The cost of sugar production has gone up substantially on pan India basis is Rs. 41.66 per kilo based on state wise sugar production costs. This has been submitted to the government on September 04, 2024 jointly by Indian Sugar and Bio- energy Manufacturers Association (ISMA) and National Federation of Co-operative Sugar Factories Ltd (NCSF).”
The letter also notes that the Maharashtra sugar season for 2024-25 is set to begin on November 15, 2024, as decided by the State Ministers Committee. Favorable monsoon conditions have resulted in 14 lakh hectares of excellent sugarcane crop. Maharashtra’s sugar production is estimated to exceed 110 lakh tonnes. The primary income for mills comes from sugar sales, but current market prices for S-30 grade sugar are around Rs. 3,500 to Rs. 3,550 per quintal, with poor lifting being a major concern. Due to notified MSP of sugar Rs. 3100 per quintal and the money available from the bank on pledged stocks based on MSP of sugar will not cover FRP of sugarcane at Rs. 3400 per ton with 14 days statutory period of cane payment.
WISMA emphasized that there is no parity between sugar/ethanol and cane prices hence sugar as well as ethanol production costs are prohibitive for sugarcane payments in time. Therefore, we earnestly sociate your kind attention and consideration of rise in minimum selling price of sugar at production cost of Rs. 41.66 per kilo which will help to start the sugar mills crushing operations in November- 2024 and cane payments to the farmers without hindrance, otherwise we will be compelled not to start the crushing operation ensuing season.
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