<p>New Delhi: <a href="https://www.deccanherald.com/search?q=sugar">Sugar </a>mills lobby ISMA on Thursday urged the government to increase the minimum selling price (<a href="https://www.deccanherald.com/search?q=MSP">MSP</a>) of sugar to Rs 41.66 per kg from the current Rs 31 per kg, citing jump in production costs and higher payouts to cane farmers.</p><p>ISMA President Gautam Goel said sugar MSP was last revised in 2019. “While the MSP has remained unchanged at Rs 31 per kg since its last revision in early 2019, the cost of production has risen sharply due to continuous increases in cane prices and other costs,” Goel said at ISMA’s annual general meeting.</p>.Govt to consider industry's demand to hike minimum selling price of sugar: Food Minister Joshi.<p>He pointed out that sugarcane’s fair and remunerative price (FRP) has increased to Rs 355 per quintal from Rs 275 per quintal in 2019-20. He claimed that sugar production for the current sugar season stood at Rs 41.66 per kg.</p><p>“The growing mismatch between cane and sugar prices poses a serious challenge towards timely cane price payments and the overall financial health of the sugar industry,” Goel said.</p><p>Speaking at the event, Food Secretary Sanjeev Chopra said the government is actively considering the proposal to raise sugar MSP.</p><p>ISMA chief claimed that current sugar price in the market is below the cost of production.</p><p>He said the increase in sugar MSP would not pose any financial burden on the government and its impact on inflation would be miniscule.</p><p>“Given sugar’s low weight in the CPI basket and the fact that MSP revision entails no fiscal burden on the Government, an urgent upward revision of MSP - along with a move towards a dynamic, cost-linked MSP framework - is essential to ensure timely cane payments, protect farmer welfare, restore mills viability, and maintain long-term stability of the sugar sector,” Goel said. </p>
<p>New Delhi: <a href="https://www.deccanherald.com/search?q=sugar">Sugar </a>mills lobby ISMA on Thursday urged the government to increase the minimum selling price (<a href="https://www.deccanherald.com/search?q=MSP">MSP</a>) of sugar to Rs 41.66 per kg from the current Rs 31 per kg, citing jump in production costs and higher payouts to cane farmers.</p><p>ISMA President Gautam Goel said sugar MSP was last revised in 2019. “While the MSP has remained unchanged at Rs 31 per kg since its last revision in early 2019, the cost of production has risen sharply due to continuous increases in cane prices and other costs,” Goel said at ISMA’s annual general meeting.</p>.Govt to consider industry's demand to hike minimum selling price of sugar: Food Minister Joshi.<p>He pointed out that sugarcane’s fair and remunerative price (FRP) has increased to Rs 355 per quintal from Rs 275 per quintal in 2019-20. He claimed that sugar production for the current sugar season stood at Rs 41.66 per kg.</p><p>“The growing mismatch between cane and sugar prices poses a serious challenge towards timely cane price payments and the overall financial health of the sugar industry,” Goel said.</p><p>Speaking at the event, Food Secretary Sanjeev Chopra said the government is actively considering the proposal to raise sugar MSP.</p><p>ISMA chief claimed that current sugar price in the market is below the cost of production.</p><p>He said the increase in sugar MSP would not pose any financial burden on the government and its impact on inflation would be miniscule.</p><p>“Given sugar’s low weight in the CPI basket and the fact that MSP revision entails no fiscal burden on the Government, an urgent upward revision of MSP - along with a move towards a dynamic, cost-linked MSP framework - is essential to ensure timely cane payments, protect farmer welfare, restore mills viability, and maintain long-term stability of the sugar sector,” Goel said. </p>