Mills urge government to increase sugar MSP

Kolhapur: According to a report by The Times of India, sugar millers are urging the government to increase the minimum selling price of sugar to Rs 3,750 per quintal.

The Maharashtra State Co-operative Sugar Factories Federation has sent a letter to the central government, requesting the implementation of the recommendations made by the Commission for Agricultural Costs and Prices (CACP). The federation is concerned about the impact of the recent rise in the fair and remunerative prices (FRP) of sugarcane on the revenue of sugar mills.

Recently, the central government raised the FRP for sugarcane to Rs 3,150 per tonne.

P R Patil, president of the federation said, “Not just the CACP, the Sugar Prices Control Act has also mandated the central government to change the prices at which sugar should be sold in the market. The MSP was introduced in 2018. Since then, while the FRP has increased, the MSP continues to remain less.

“The government increased FRP for sugarcane upto Rs 3,150 per tonne but the MSP remains at Rs 3,100 per quintal. In this situation it is difficult for millers to pay farmers their dues,” he added.

The federation has suggested the sugar MSP of Rs 3,750 per tonne taking into account various expenses such as operational costs, salaries, interest payable on existing loans, and, importantly, the advance payment of FRP even before the sugar is completely sold.



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