COMMODITY
Government to soon take decision on increasing MSP of sugar
Jan-07-2025

Food and Consumer Affairs Minister Pralhad Joshi said that the government is likely to soon take a decision on increasing the minimum support price (MSP) of sugar. The MSP of sugar remains unchanged at Rs 31 per kg, a rate established in February 2019. However, industry bodies have demanded for an increase due to rising production costs and economic pressures faced by sugar mills. 

Indian Sugar and Bio-Energy Manufacturers Association (ISMA) and National Federation of Cooperative Sugar Factories (NFCSF) are pushing for an increase in the MSP to Rs 39.14 per kg or even Rs 42 per kg to better reflect production costs and support the financial health of sugar mills in India.

Earlier, ISMA data showed that Sugar production fell by 16% to 95.40 lakh tonnes in the first quarter of the ongoing current marketing year that started in October as compared to 113.01 lakh tonnes in the year-ago period, mainly due to a decline in output in Maharashtra. The production data excludes the diversion of sugar for ethanol making.

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