ISMA urges govt to hike MSP for sugar
09 May 2023, Uttar Pradesh: The Indian Sugar Mills Association (ISMA) urged the government to increase the minimum support price (MSP) of sugar to Rs 38 per kg from the current level of Rs 31 per kg in line with fair and remunerative price (FRP) of cane. MSP of sugar was last announced in February 2019. In a communication to commerce and industry minister Piyush Goyal, ISMA President Aditya Jhunjhunwala said “The government had fixed MSP of sugar at Rs 31 per kg in February 2019 and it had remained unchanged since then. However, the FRP of sugarcane had increased from Rs 2,550 per tonne in 2017-18 to Rs 3,050 per tonne for the crushing year 2022-23.” Since 85% of the sugar mills’ revenue comes from the sales of sugar, it is an important component to pay the cane price to farmers, it stated. Jhunjhunwala added that 85% of the revenue generated by sugar mills comes from the sale of sugar, which presently costs Rs 38 per kg to produce. “Furthermore, the MSP of Rs 31 per kg only accounts for the per quintal sugarcane price of Rs 30.50 based on an average sugar recovery rate of 10% per quintal of sugarcane, while mills bear expenses such as staff salaries, labour wages, transportation costs, plant and machinery maintenance, and other overheads,” he added. The ISMA also highlighted the sharp increase in the cost of sugar production due to rising prices of essential chemicals like sulphur and lime, jute and high-density polyethylene bags for packing sugar, and bank interest on term loans and working capital, as well as increased manpower costs
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