Urges new government to increase MSP of sugar and emphasize on ethanol blending program
03-Jun-2024 09:14 PM
New Delhi. The President of the Karnataka unit of South India Sugar Mills Association (CISMA) and the Executive Director of the leading sugar producing company till date have urged the new government to be formed at the Center to increase the ex-factory minimum selling price (MSP) of sugar and give a concrete assurance on continuing the ethanol blending program. After the results of the Lok Sabha elections are declared on June 4, the process of formation of a new government at the Center will begin.
The President of CISM says that there has been no change in the MSP of sugar for the last four-five years, while in the meantime the fair and remunerative price (FRP) of sugarcane has been increasing regularly.
Similarly, the government has greatly limited the use of sugar (sugarcane) for ethanol production in the 2023-24 marketing season, due to which distilleries had to face great difficulty in operating their operations.
The government should give a concrete assurance that adequate stock of raw material for ethanol production will be made available under all circumstances.
Only government assurance will encourage entrepreneurs to invest huge capital in the development, expansion and maintenance of distilleries.
This will encourage sugar mills producing ethanol in the 2024-25 season to produce ethanol as per the requirements of the Ethanol Blending Programme (EBP).
As far as the minimum selling price of sugar is concerned, it has become necessary to increase it. For the upcoming marketing season, an increase of 8 percent in the FRP of sugarcane has been announced once again, which will naturally increase its cost.
For the last three years, the prices of sugarcane have been increasing but the sugar MSP is being kept stable.
The difference between the production cost and the selling price of sugar puts a financial burden on the mills and there is difficulty in paying the dues of sugarcane producers. In the current season of 2023-24, overcoming the initial apprehension, sugar production finally reached a satisfactory level.