Indian Sugar Mills Association has urged the government to hike the minimum support price (MSP) of sugar to Rs 36-37 per kg from the existing Rs 31 per kg, reports Financial Express.
Aditya Jhunjhunwala, president of ISMA, communicated with the food ministry stating that the MSP of sugar was fixed at Rs 31 per kg in February 2019 when the FRP of sugarcane was Rs 275 per quintal. The government has increased FRP few times since then but the MSP remains the same.
Sugar mills earn 85% of their income from the sale of sugar and hence it is an important component to pay cane bills to the farmers, he said.
Ensuring that the sugar industry could get at least the minimum cost of production of sweeteners, the government in July 2018 introduced the concept of MSP of sugar.