New Delhi: The Indian Sugar Mills Association has urged the Prime Minister’s Office (PMO) to hike the Minimum Selling Price (MSP) of sugar so that the cash-strapped sugar mills would be able to pay the pending cane dues before commencing the upcoming crushing season.
As per the news report published in Business Standard, the ISMA has written PMO to increase MSP from the existing Rs 31 per kg to at least Rs 34-35 per kg to help sugar mills to pay the cane arrears.
According to ISMA, the MSP was last increased in February 2019 and increasing it to Rs 34-34.50 per kg will help sugar mills to increase their revenue and they will be able to clear cane dues of farmers. An increase in MSP will help sugar mills get Rs 4,800 crore more for the 16.1 million tonnes sugar stocks in godowns and another Rs 9,200 crore of additional working capital in 2021-22 against the estimated sugar production in the next sugar season of 31 million tonnes.
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