The clamour for an upward revision in the Minimum Selling Price (MSP) of Sugar is growing. An industry leader and Vice Chairman & Managing Director of one of the largest integrated sugar manufacturers in India, has advocated for an increase in the sugar MSP.
Speaking exclusively to ChiniMandi, Tarun Sawhney, Vice Chairman & Managing Director of Triveni Engineering & Industries Ltd. has said that an increase in the sugar MSP is vital for the sustainability of the industry.
Sawhney said “The MSP has remained unchanged since 2019, while input costs, particularly the Fair and Remunerative Price (FRP) of sugarcane, have risen significantly, now standing at ₹340 per quintal”. Supporting his advocacy for the rise in sugar MSP, he elaborated that this discrepancy places a substantial burden on the sugar industry, diminishing profitability and hindering the ability to pay farmers.
He further added that given the rising sugar consumption and higher domestic production projections, aligning the MSP with the FRP is imperative. “This adjustment will stabilise the industry, safeguard farmers’ interests, and ensure a steady sugar supply, ultimately benefiting consumers,” Sawhney concluded.
The Government introduced the Minimum Selling Price (MSP) of sugar in 2018 to ensure that the sugar industry gets at least the minimum cost of production of sugar, so as to enable them to clear cane price dues of farmers. This was done to protect the interest of the cane farmers.
In 2019, the sugar MSP was increased to Rs.31/kilo. At that time, FRP in the country was Rs.275 per quintal. Since then, the FRP has seen an increase of almost Rs. 65/quintal (including the latest increase of Rs.340/quintal), whereas the MSP continues to remain static at Rs. 31/kilo. As the MSP is determined taking FRP and other factors into account, sugar mills are asking for an immediate increase in MSP, to mitigate the increase in the cost of production.
Two pricing policy is best option for sugar sales,one for industrial consumption and one for household or consumers.
Sugar consumption is around 75% as industrial consumption and rest house hold.
Industries should be given twice the rate from house hold.
The difference earned should be equally distributed between govt., farmers and sugar industries.