The potential increase in the Minimum Selling Price (MSP) of sugar could lead to higher prices for consumers, as the government considers a proposal to raise the ex-factory MSP.

This decision follows repeated demands from the sugar industry, which argues that the current MSP of Rs 3100 per quintal, set in February 2019, no longer covers the significantly increased production costs, primarily due to the rising Fair and Remunerative Price (FRP) of sugarcane and other operational expenses.

Industry organizations have requested that the MSP be raised to between Rs 3900 and Rs 4200 per quintal to help alleviate the financial strain on sugar millers.

If the MSP is increased, sugar millers would be required to sell their product at this higher price, inevitably resulting in a price hike in the open market.

Although the government has delayed the decision on this matter for some time, the industry remains hopeful that a resolution will be reached soon in the new year.