Sugar industry is facing a severe crisis due to no increase in MSP prices

The central government's delay in making immediate decisions regarding the Minimum Support Price (MSP) of sugar is causing significant trouble for the sugar industry. Issues such as low margins in working capital and increasing debts may arise, according to Jaiprakash Dandegaonkar, Director of the National Federation of Cooperative Sugar Factories Limited, who spoke to PTI.

Dandegaonkar stated that while production costs, transportation costs, and labor charges in the sugar industry have increased, the price of sugar has remained unchanged.
The government's slow decision-making is leading to potential problems like low margins in working capital and increasing debts in the sugar industry, said Dandegaonkar.

He further explained that the government has increased the Fair and Remunerative Price (FRP) of sugarcane three times, but there has been no corresponding increase in the MSP of sugar. State federations have been demanding this for five years, but the government has not responded positively.

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Such policies are creating challenges for the sugar industry. We are simply asking for the cost of production of sugar. We want at least ₹41 per kilogram as the cost of production. The price of sugarcane has gone up, transportation costs have risen, and labor charges have increased, Dandegaonkar emphasized.