Plan to increase the minimum selling price of sugar postponed

24-Oct-2024 06:12 PM

New Delhi. The average retail selling price of sugar in the domestic sector is around Rs 45 per kg, in view of which the Committee of Ministers has postponed the proposal to increase its ex-factory minimum selling price (MSP) for the time being. It is worth mentioning that the last time the MSP of sugar was increased six years ago.

It is worth mentioning that the concept of fixing MSP of sugar was implemented in June 2018 with the aim of protecting the interests of sugarcane producers so that the industry can get at least the minimum cost of production of sugar.

One of its objectives was also to make the sugar mills economically capable to pay the price of sugarcane to the farmers on time.

In the year 2018, the ex-factory minimum selling price of sugar was fixed at Rs 2900 per quintal, which was increased by Rs 200 to Rs 3100 per quintal in the year 2019. Since then, no change has been made in it, while the sugar industry has been repeatedly urging the government to increase the MSP.

Although the government had earlier given assurance and indication of this, but due to some reasons, a decision could not be taken on it.

The Commission for Agricultural Costs and Prices (CACP) had suggested to regularly review the minimum selling price of sugar on the basis of the fair and remunerative price (FRP) of sugarcane, but it has not been implemented yet.

The retail price of sugar has been running at a high level for the last several months, so the government does not want to further accelerate the market by increasing its MSP.

Domestic demand, consumption and price of sugar often increases during the festive season. Sugar exports have been closed since June 2023.