Raise minimum selling price for sugar to ₹34.50 a kg: ISMA

The ex-mill prices of sugar in most States are under pressure and witnessing a downward trend, according to the Indian Sugar Mills’ Association (ISMA).

In a press release on Wednesday, ISMA said market reports indicated that the average prices in Tamil Nadu hovered between ₹3,200 and ₹3,225 a quintal, ₹3,160 to ₹3,180 in northern States and in Maharashtra and Karnataka at a minimum selling price of ₹3,100 a quintal.

The current prices are ₹80 to ₹100 a quintal less than the prices during the corresponding period last year.

This has adversely affected the liquidity of sugar mills. “If such a situation persists, cane price arrears will jump very fast to uncomfortable levels,” the association said.

It appealed to the government to increase the MSP for sugar to ₹34.50 a kg. “There is a need to quickly decide on increasing the MSP of sugar to ensure that sugar mills are able to pay to farmers on time,” it said.

During the 2020-2021 sugar season that commenced on October 1 last year, 502 sugar mills started operations, and 98 mills across the country ended operations by February 28, 2021.

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Printable version | Oct 22, 2021 6:43:34 PM |

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