“Central Govt. should introduce dual MSP between Northern & Southern States” – Praful Vithalani

Speaking at Sugar Conference 2020, Chairman of All India Sugar Trade Association, Mr. Praful Vithalani shared his views that India’s estimated closing stock of sugar is expected to be 155 LMT this year which is a jump of over 100% from the average of a decade which stands at 76 LMT. The said 155LMT if calculated according to current MSP of Rs.31000 per MT sums to a whopping investment of around Rs.48000 crores.

While speaking about the scenario in Maharashtra where the estimated sugar production is 107 LMT, the sugar availability during the season stands at 148 LMT, the estimated domestic sale is 62 LMT, estimated exports 19 LMT leaving an estimated closing balance of 67 LMT on 30th September 2019. The said 67 LMT according to the current MSP of Rs.3100 per MT sums to an investment of Rs.20,800 crores by mills in the state.

Though the Government has announced various steps to bail out the ailing industry, however taking a worm’s eye view on Maharashtra state, since October 2018 to May 2019, the Central Government has allocated 60.50 LMT to sugar mills in Maharashtra and mills are able to sale only approximately 46 LMT failing to sell 14 LMT and hence falling short of cash liquidity worth Rs.4350 crores. There is excess transportation cost difference of Rs.1800 to Rs.2000 per MT which Maharashtra seeks help from the Government. And hence, the Central Government should introduce dual MSP where Central Northern states MSP to be higher than that of Central Southern states or Maharashtra State Government gives transport subsidy for the difference of transportation cost which can enable Maharashtra to sell the allotted quota allotted every month.

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1 COMMENT

  1. साखर उद्ययोग नियंत्रण मुक्तत केला आहे मग कंन्ट्ररोल अॉर्डर कशाला हवी रिलीज चे आकडे ठरवनेचे गणित चुकीचे आहे गळीत कमीअसेल तर रिलीज अत्ययंत कमी मिळते साखर विकुन एफ आर पी कशी देणार १४ दिवसात शेतकर्ययाचे पेमेंट वइतर खर्चचभागवने याचे गणीत जुळत नाही १५ दिवसात गळीतास आलेल्याऊसापासुन तयार होणारी साखर विकुन किमान खर्चच भागवने खाजगी व प्लेज नघेतलेल्यया कारखान्ययाना शक्यय होऊ शकेल यावर विचार व्हहावा नियम मोडुन साखर विक्री हा विषय सराईत पण होऊनये असे वाटत असेल तर धोरनात लवचीकता व मक्ततेदाराचे थोडे बाजुला ठेवने गरजेचे वाटते.

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