Government Mulls Increase in Sugar MSP Amid Rising Costs

Food and Consumer Affairs Minister Pralhad Joshi announced the government's consideration of increasing the minimum support price of sugar from the current Rs 31 per kg, which has remained unchanged since February 2019. Industry groups press for a hike due to rising production costs affecting sugar mills.

The Indian government is poised to make a crucial decision on the minimum support price (MSP) of sugar, as confirmed by Food and Consumer Affairs Minister Pralhad Joshi. Currently fixed at Rs 31 per kg, the MSP has not seen an increase since February 2019, despite industry pressures.

With rising production costs and economic challenges burdening sugar mills, industry representatives such as the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) and the National Federation of Cooperative Sugar Factories (NFCSF) have called for the MSP to rise to at least Rs 39.14 per kg, if not Rs 42 per kg.

Minister Joshi indicated that the demand has been acknowledged, stating that the ministry is actively deliberating the issue. A decision is expected shortly, potentially providing financial relief to the beleaguered sugar industry.

(With inputs from agencies.)