Sugar industry has high expectations from the third term of NDA government at the Centre

17-Jun-2024 08:11 PM

New Delhi. The indigenous sugar industry and trade sector is expecting some positive policy changes in the third term of the ruling NDA at the Centre.

The second term had mixed results for the sugar industry. During the second term, the sugar industry repeatedly urged the government to increase the ex-factory minimum selling price of sugar. But despite all the assurances, this request could not be accepted.

On the other hand, the government completely opened the export of sugar, due to which its total export in a marketing season reached an all-time high of 110 lakh tonnes. Similarly, sugar mills and distilleries were encouraged to increase the production of ethanol.

The same demands and problems of the industry will remain in the third term as well. Commercial export of sugar has been banned from June 1, 2023, while there has been no increase in the minimum selling price (MSP) of sugar since February 2019,

while in the meantime the fair and remunerative price (FRP) of sugarcane was increased every year. Now the apex body of cooperative mills - National Federation of Cooperative Sugar Factories has urged the government to increase the MSP of sugar from Rs 3100 per quintal to Rs 4200 per quintal because the FRP of sugarcane has become very high.

As far as ethanol is concerned, till last year the government was promoting its production, but in view of the possibility of a decline in the domestic production of sugarcane and sugar in the 2023-24 season,

the limit of use of sugar in the manufacture of ethanol was fixed at 17 lakh tonnes, whereas earlier 35-40 lakh tonnes were being used. The industry expects its limit to be increased in the next season.