Sugar industry urges government to review policies and provide financial support

22-Jul-2024 08:03 PM

Pune. Maharashtra once again remained the country's leading sugar producing state in the current marketing season of 2023-24. Earlier, it was feared that sugar production would be less than 100 lakh tonnes, but the actual production increased to 110 lakh tonnes.

Apart from this, 58 crore liters of ethanol was produced and supplied in the state till June 30. But despite these impressive production figures, the sugar industry in Maharashtra is being forced to face many challenges and financial difficulties.

Industry analysts have urged the government to review policies and provide financial assistance to the mills so that there is no difficulty in successfully facing the existing financial challenges and continuing their activities in the upcoming marketing season. 

The ex-factory minimum selling price (MSP) of sugar has remained stable at Rs 3100 per quintal since the 2018-19 season, which came into effect from February 14, 2019.

There has been no increase in it since then, while the Fair and Remunerative Price (FRP) of sugarcane has been increasing regularly.

This FRP has increased to Rs 3400 per tonne. As a result, the cost of production of sugar including other expenses has jumped to Rs 41.66 per kg.

On the basis of these figures, the industry has urged the government to immediately increase the MSP of sugar and said that unless there is an expected increase in it, sugar mills will have to bear huge losses.

The financial condition of sugar mills is not good and they are in dire need of government assistance.