The sugar industry in the country is encountering challenges, according to a representative from a federation of sugar units, who stated on Tuesday that the Centre has not raised its Minimum Support Price (MSP) in five years.
The sugar industry faces potential issues such as narrow working capital margins and mounting debts due to delayed decision-making by the central government, stated Jaiprakash Dandegaonkar, director of the National Federation of Cooperative Sugar Factories Limited told PTI.
"The government has increased the FRP (Fair and Remunerative Price) of sugarcane three times but there is no hike in the MSP of sugar. All state federations have been demanding it for five years, but the government is not thinking positively about it," he said. Such policies are posing a problem for the sugar industry, he claimed.
"We are just demanding the cost of production of sugar. We want at least Rs 41 (per kg) as the cost of production. The cost of sugarcane has been hiked, transportation costs have gone up and labour charges have also been increased. But the price of sugar remains the same," Dandegaonkar said.