The government is likely to take a decision on increasing the minimum selling price (MSP) of sugar within the next few days. MSP of sugar has remained unchanged at Rs 31 per kg since 2019, despite annual hikes in the fair and remunerative price (FRP) paid to sugarcane farmers. For the 2023-24 season, sugar production is estimated at 32 million tonne, lower than 32.8 million tonne in the previous season, but sufficient to meet the domestic demand of 27 million tonne.
The sugar-processing industry has been demanding an increase in the minimum selling price. Industry bodies have urged the government to raise the MSP to at least Rs 42 per kg to help mills sustain operations amid rising production costs. India, the world’s largest sugar consumer, restricted the use of sugar in ethanol production during the 2023/24 marketing year that ends on Sept. 30 and also prohibited exports to keep a lid on domestic prices.
Presentation- Dibyabharati Nayak
