Raju Shetti wants MSP of sugar to be increased to ₹40 per kg
11 December 2023, Kolhapur: Swabhimani Shetkari Sanghatana president and former MP Raju Shetti has written to Prime Minister Narendra Modi asking him to hike the minimum sale price (MSP) of sugar to Rs 40 per kg from the current price of Rs 36.5 per kg to address the concerns raised over the centre’s decision to cut the ethanol production from sugar cane syrup.
The minimum selling price is the price below which the mills cannot sell the white/refined sugar to the traders.
The MSP was introduced in 2018 to ensure the millers get steady and sufficient returns to pay the farmers for the sugar cane — the basic raw material required to produce sugar. The market prices are Rs 5-6 per kg more than the selling price, which is also termed as factory-gate price. If the selling price increases, the consumers face the financial burden ultimately.
Shetti said the decision to curb ethanol production has a duel impact, one is on the millers who have invested crores for the ethanol production and second, the farmers who will not get the price pledged for the sugar cane by the millers. In the South Maharashtra region, the millers have pledged Rs 3,100 to Rs 3,200 for per tonne of sugar cane supplied by the farmers.
“The price is pledged hoping for good returns on the ethanol production. However, this promise is unlikely to be met now. We suggest that the selling price should be increased so that the millers can pay the farmers their due and secondly can cope up with financial loss they will incur due to curb on ethanol production,” said Shetti.
Shetti also praised the central government’s ethanol programme as it had brought stability in the sugar industry. “The decision to allow mills to make ethanol from sugar cane syrup was praiseworthy. It brought the foreign currency to the tune of Rs 24,700 crore. It led to stability in the industry and both the millers and farmers were happy,” added Shetti in the letter.
The Center has instructed sugar mills and distilleries not to use sugar cane juice or syrup for ethanol production in the 2023-24 season to ensure sufficient sugar production and stable prices. This decision, made under the Sugar (Control) Order, 1966, aims to maintain adequate sugar availability for domestic consumption. The move is believed to be influenced by the upcoming 2024 general elections. Maharashtra sugar mills, which account for 30% of India’s ethanol production, will be particularly affected. The mills can continue using B- and C-heavy molasses for ethanol production.
The government has directed all sugar mills and distilleries to stop using sugarcane juice for ethanol production to ensure an adequate supply of sweetener for domestic consumption and maintain stable prices. However, the supply of ethanol from B-heavy molasses to oil marketing companies will continue. This directive, issued under the Sugar (Control) Order 1966, will be effective immediately for the ethanol supply year 2023-24. The food ministry conveyed this instruction in a letter to the managing directors and CEOs of all sugar mills and distilleries.
The Sanjivani Sugarcane Producers Association demands the revamping of the Dharbandora factory to restart sugar production. The factory was shut down in 2019-20 due to mechanical problems and shortage of local sugarcane. It then planned to switch to ethanol production, but the government failed to find a bidder. Farmers have been sending their cane produce to other factories. The association believes that sugar production is still possible if the government revamps the production setup. Kolhapur: Swabhimani Shetkari Sanghatana president and former MP Raju Shetti has written to Prime Minister Narendra Modi asking him to hike the minimum sale price (MSP) of sugar to Rs 40 per kg from the current price of Rs 36.5 per kg to address the concerns raised over the centre’s decision to cut the ethanol production from sugar cane syrup.
The minimum selling price is the price below which the mills cannot sell the white/refined sugar to the traders.
The MSP was introduced in 2018 to ensure the millers get steady and sufficient returns to pay the farmers for the sugar cane — the basic raw material required to produce sugar. The market prices are Rs 5-6 per kg more than the selling price, which is also termed as factory-gate price. If the selling price increases, the consumers face the financial burden ultimately.
Shetti said the decision to curb ethanol production has a duel impact, one is on the millers who have invested crores for the ethanol production and second, the farmers who will not get the price pledged for the sugar cane by the millers. In the South Maharashtra region, the millers have pledged Rs 3,100 to Rs 3,200 for per tonne of sugar cane supplied by the farmers.
“The price is pledged hoping for good returns on the ethanol production. However, this promise is unlikely to be met now. We suggest that the selling price should be increased so that the millers can pay the farmers their due and secondly can cope up with financial loss they will incur due to curb on ethanol production,” said Shetti.
Shetti also praised the central government’s ethanol programme as it had brought stability in the sugar industry. “The decision to allow mills to make ethanol from sugar cane syrup was praiseworthy. It brought the foreign currency to the tune of Rs 24,700 crore. It led to stability in the industry and both the millers and farmers were happy,” added Shetti in the letter.
The Center has instructed sugar mills and distilleries not to use sugar cane juice or syrup for ethanol production in the 2023-24 season to ensure sufficient sugar production and stable prices. This decision, made under the Sugar (Control) Order, 1966, aims to maintain adequate sugar availability for domestic consumption. The move is believed to be influenced by the upcoming 2024 general elections. Maharashtra sugar mills, which account for 30% of India’s ethanol production, will be particularly affected. The mills can continue using B- and C-heavy molasses for ethanol production.
The government has directed all sugar mills and distilleries to stop using sugarcane juice for ethanol production to ensure an adequate supply of sweetener for domestic consumption and maintain stable prices. However, the supply of ethanol from B-heavy molasses to oil marketing companies will continue. This directive, issued under the Sugar (Control) Order 1966, will be effective immediately for the ethanol supply year 2023-24. The food ministry conveyed this instruction in a letter to the managing directors and CEOs of all sugar mills and distilleries.
The Sanjivani Sugarcane Producers Association demands the revamping of the Dharbandora factory to restart sugar production. The factory was shut down in 2019-20 due to mechanical problems and shortage of local sugarcane. It then planned to switch to ethanol production, but the government failed to find a bidder. Farmers have been sending their cane produce to other factories. The association believes that sugar production is still possible if the government revamps the production setup.
Also Read: Crystal Crop Protection acquires GRAMOXONE® from Syngenta for the Indian market
(For Latest Agriculture News & Updates, follow Krishak Jagat on Google News)
