The sugar industry is facing an unprecedented crisis, but it may witness big relief in the upcoming days. As per the report published in Business Standard, the government is likely to revise sugar minimum selling price (MSP) by 10 per cent from its current level of Rs 29 a kg to Rs 32 a Kg in the weeks ahead.
The sugar mills have been in big trouble as they been choked up with excessive sugar stocks, scanty demand in the market and dues of FRP to farmers. Though the government came up with the monthly release mechanism, which proved to be a smooth path in channelizing the sugar stocks, the millers have had a rough time selling the previous month’s quota, and yet they are left with around 40-50% of their stocks.
Speaking to Business Standard, on the condition of anonymity, source said, “The central government would review the current MSP and announce a hike of Rs 2-3 a Kg in the sugar sale price soon, however, there would be a caveat of the sugar companies not demanding any further subsidy from the Centre once the MSP hike has been announced.”
Concerned over mounting cane arrears, the government in June, 2018, had announced a bailout package of over Rs 7,000 crore to ensure cash-starved mills clear dues to farmers at the earliest.
On January 6, NCP chief Sharad Pawar wrote a letter to Prime Minister Narendra Modi launching a scatching attack on him over sugarcane growers in the country committing suicide due to financial desperation and said immediate steps must be taken to prevent any mass-scale revolt by farmers. This letter comes in the backdrop of the Modi-led government at the Centre facing heat from various opposition parties over growing farm distress across the country.