Maharashtra Deputy Chief Minister Ajit Pawar met Union Home Minister and Minister of Cooperation Amit Shah in New Delhi on Thursday to discuss the issue of the Minimum Selling Price (MSP) of sugar.
Speaking to the media, he said, “I met with him regarding the price of sugar and discussed the sugar MSP issue. I highlighted that while the sugarcane Fair Remunerative Price (FRP) has been consistently increased, the sugar MSP has not seen a similar rise, which is causing significant issues for the sugar industry. I urged him to raise the sugar MSP, as the industry, currently in severe trouble, will not be able to recover without this change. He acknowledged the issue and assured us that he would find a solution by next month.”
Sugar millers claim they are facing a difficult situation as the price of sugar in the market has dropped with the start of the new season. This decline in sugar prices will make it harder for mills to generate enough revenue to pay farmers for their sugarcane on time.
In June 2018, the Indian government set the MSP of sugar for the first time at Rs. 29 per kg, when the 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.
