Sugar Industry Faces Challenges As MSP Remains Stagnant, Claims Federation
Date
7/17/2024 2:42:29 PM
(MENAFN- KNN India)
New Delhi, Jul 17 (KNN) The sugar industry in India is grappling with potential financial difficulties due to the central government's inaction on increasing the Minimum Support Price (MSP) for sugar, according to a statement made by a top industry representative on Tuesday.
Jaiprakash Dandegaonkar, Director, National Federation of Cooperative Sugar Factories Limited, expressed concern over the government's lack of swift decision-making.
In an interview with PTI, he warned that the industry might face issues such as working capital shortages and mounting debts if the situation persists.
Dandegaonkar highlighted a discrepancy in government policy, noting that while the Fair and Remunerative Price (FRP) for sugarcane has been raised three times in recent years, the MSP for sugar has remained unchanged for half a decade.
"All state federations have been demanding (an increase) for five years, but the government is not thinking positively about it," he stated.
The industry spokesperson emphasised that their request is based on covering production costs. "We are just demanding the cost of production of sugar. We want at least Rs 41 (per kg) as the cost of production," Dandegaonkar explained.
He pointed out that various factors, including increased sugarcane prices, rising transportation costs, and higher labour charges, have contributed to elevated production expenses.
The Federation's concerns underscore the complex challenges facing India's sugar industry, as it attempts to balance rising input costs with stagnant support prices.
(KNN Bureau)
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