If MSP of sugar is not increased, crushing of sugarcane may get delayed
28-Oct-2024 04:40 PM
Kolhapur. West India Sugar Mills Association (WISMA), an important body of 122 private sugar mills of Maharashtra, has warned the Central Government that if the increase in ex-factory minimum selling price (MSP) of sugar and purchase price of ethanol is not announced as soon as possible, then it will have to ask its members (sugar mills) to delay the crushing process of sugarcane.
It is worth mentioning that recently a group of ministers had met at the central level in which it was decided not to increase the (MSP) of sugar because its retail market price is already running at a high level of Rs 42-43 per kg. The government fears that if MSP is increased,
the retail price will increase even more, which will increase the problems of common consumers. It should be known that MSP is the price below which millers cannot sell their sugar.
It is also called factory gate price. But Visma has strongly demanded the government to increase the MSP of sugar before the actual start of the crushing season and has also sent a letter to the Central Government in this regard.
The President of Visma has said that the Central Government has increased the Fair and Remunerative Price (FRP) of sugarcane five times but there has been no increase in the MSP of sugar for the last five years.
Similarly, there has been no increase in the purchase price of ethanol for the Oil Marketing Companies (OMCs) for the last two years, while the cost of sugar and ethanol has increased considerably.
It has been made mandatory for the millers to pay the price of sugarcane within 15 days of crushing, otherwise criminal action can be taken against the Chairman and Managing Director of the mill.
It is better that the sugar mills do not start crushing sugarcane. The member units of the organization will be asked not to start harvesting-preparation and crushing of sugarcane crop until the government accepts both these demands.
However, the Maharashtra government has given permission to the sugar mills to start crushing sugarcane from November 15.