The government is considering the demand for increase in the purchase price of ethanol and MSP of sugar.
27-Sep-2024 11:34 AM
New Delhi. Union Food Consumer Affairs and Public Distribution Minister Prahlad Joshi has said that the government is seriously considering the demand for increase in Oil Marketing Companies (OMCs),
while the decision to open the export of sugar can be taken after assessing the production for the next marketing season.
The new marketing season for crushing of sugarcane and production of sugar will start from October 2024 and will continue till September 2025.
In a conversation with I Grain India (Director Rahul Chauhan), the Food Minister said that the indigenous industry has been demanding an increase in the MSP of sugar for a long time and the government is now considering it.
NITI Aayog has been asked to prepare a road map for the blending program (EVP) of 25 percent ethanol in petrol.
The government is confident that the target of 20 percent blending of ethanol in petrol by 2025-26 will be achieved.
It is noteworthy that the determination of minimum selling price (MSP) of sugar started from the year 2018 and in the year 2019 it was last increased by Rs 200 per quintal. Since then, the fair and remunerative price (FRP) of sugarcane has been increasing continuously but there has been no increase in the MSP of sugar.
In the year 2018, the MSP of sugar was fixed at Rs 2900 per quintal, which was increased by Rs 200 to Rs 31 per quintal in the year 2019. This MSP is still in force.
The Food Minister has said that the situation of sugar production during the 2024-25 season is looking good because there has been abundant monsoon rains.
The Food Secretary has also expressed hope for better production of sugarcane and sugar. According to the Food Secretary,
due to government intervention and policies, the price of sugar remains stable and consumers are getting relief.
A meeting was held between the Food Secretary and Sugarcane Commissioners from various states yesterday in which the possible production of sugar during the 2024-25 season was assessed.
India has now become the third largest producer and consumer of ethanol in the world.