Stagnant Sugar MSP Leaves Industry in Crisis

The sugar industry in the country is struggling due to a stagnant Minimum Support Price (MSP) for five years, causing financial distress. The government's lack of a prompt decision on MSP increases is leading to rising debts and operational challenges, as claimed by industry representatives.

The sugar industry in the country is facing significant challenges due to the Centre's failure to raise the Minimum Support Price (MSP) for the past five years, a representative from the National Federation of Cooperative Sugar Factories Limited stated on Tuesday.

Issues like insufficient working capital margins and increasing debts are resurfacing as the central government delays critical decisions, according to Jaiprakash Dandegaonkar, director of the federation.

'The government has increased the Fair and Remunerative Price (FRP) of sugarcane three times, but there has been no corresponding hike in the MSP of sugar. Despite state federations demanding this for five years, the government remains apathetic,' Dandegaonkar told PTI. He emphasized that the lack of policy support is damaging the industry's sustainability.

'We are merely requesting a fair price to cover production costs,' Dandegaonkar added. 'We need at least Rs 41 per kg as the production cost. With increased costs of sugarcane, transportation, and labor, the stagnant sugar price is untenable.'