Government Mulls Sugar MSP Revision Amid Rising Cane Arrears

The Indian government is considering revising the minimum support price (MSP) for sugar and other industry relief measures. This response comes after the sugar industry expressed concerns over rising cane arrears due to surplus stocks, high production costs, and falling prices. Potential solutions include MSP revision and increased exports.

The Indian government is contemplating revising the minimum support price (MSP) for sugar as part of measures to address growing concerns within the sugar industry. Food Secretary Sanjeev Chopra announced this initiative at the ISMA Annual General Meeting, responding to warnings of rising cane arrears from mid-January.

The Indian Sugar & Bio-energy Manufacturers Association (ISMA) noted arrears of Rs 2,000 crore in Maharashtra, attributed to surplus stocks and declining domestic prices. This has resulted in a liquidity crisis for sugar mills. ISMA is advocating for an MSP revision from Rs 31 to Rs 41.66 per kg, last changed in 2019.

Chopra revealed ongoing considerations to revise MSP levels and extend sugar exports beyond the current 1.5 million tonnes. Despite a bumper sugar production forecast and lower ethanol allocation, challenges persist. The ISMA highlights the need for timely government intervention to ensure the industry's survival and stability.

(With inputs from agencies.)