The Indian sugar industry is struggling to come out of the crisis due to surplus sugarcane production and falling prices of sugar in the domestic market. On the other hand, sugarcane farmers are intensifying their protests against the Centre, state governments and sugar mills. As election is around the corner, will the government take some measure to soothe the prevailing distress situation? The millers are hopeful that the sugar industry would gain some sweetness.
Since long the sugar mills had been demanding a higher minimum selling price of sugar around Rs 34/ kg to improve margins and for speedier settlement of arrears. They are citing their inability to pay farmers the actual FRP, due to falling prices of sugar in the domestic market. Infact, many media outlets reported that the government is considering to raise the minimum selling price of sugar.
Atul Chaturvedi, Executive chairman of Shree Renuka Sugars Ltd and President of Solvent Extractors Association of India, in an interview with Zee Business, expressed about the efforts that can make sugar industry into a profitable sector among others. He said, “The government should raise the fixed MSP on sugar from Rs 29/KG to Rs34-35/KG as India is in a position where it can set the prices of sugar and the world will have to buy its product as per decided rates. There should be a rationalisation in the price of ethanol which is being sold at three different prices.”
Despite to big gap of price in the international market and other factors, sugar factories have tried their best to export the sugar.
As per reports, mills in Uttar Pradesh and Maharashtra have piled up more than Rs 11,000 crore in payment dues to farmers. The two states account for almost 75 per cent of the sugarcane grown in the country.
If government consider increasing the MSP, then the move is likely to help sugar industry and its stakeholders, who are struggling to export their surplus due to fall in global prices and a strengthening rupee.
Download ChiniMandi News App: http://bit.ly/ChiniMandiApp