The Rs 1-trillion domestic sugar sector is staring at an unprecedented crisis of lower realisation and market glut resulting in a whopping Rs 225 billion outstanding, which mill owners owe the farmers.
This has prompted the beleaguered industry to knock on the doors of the Prime Minister’s Office (PMO) for succour.
Representatives of private and public sector sugar mills have urged the Centre for extending immediate support to the industry by way of export assistance and increasing the sugar minimum support price (MSP) fixed by the central government.
Earlier this month, the Centre had announced a Rs 70 billion package to ease liquidity crunch in the sugar sector and fixed MSP of white sugar’s (refined) selling price at Rs 29/kg.
However, the industry maintained that the announcements were grossly inadequate to bail out the sector given the enormity of the crisis.
The meeting was chaired by Prime Minister Narendra Modi’s principal secretary Nripendra Mishra and also attended by the Union food secretary.