Solapur: Sugar business in India will strive only if the government fixes the minimum support price for sugar to Rs 3500 per quintal. At present sugar mills are bearing loss of Rs 450 per quintal and are under financial stress. If this continues the fate of sugar mills will be like that of textile mills, said Rajendra Girame Managerial director of The Saswad Mali Sugar Factory.
“The production cost of 1 quintal sugar is around Rs 3500 to Rs 3600 and the government has fixed FRP at Rs 3100 but we are rarely able to sell sugar at this rate. Hence we are forced to sell sugar at the rate of RS 3020 to Rs 3050 per quintal. This incurs loss to the sugar mills,” he said.
“Now production of ethanol will relieve our financial problems but we want the government to fix the sugar rate at Rs 3500,” he said.