Sugar MSP

India's sugar production has surged 28.33 per cent so far this season to 77.90 lakh tonnes, but the cooperative mills federation is urging the government to raise the minimum selling price, warning that falling market rates and rising costs are threatening farmers' payments. The National Federation of Cooperative Sugar Factories Ltd (NFCSF), which represents farmer-owned mills, said ex-mill sugar prices have dropped by nearly Rs 2,300 per tonne since the season began, now hovering around Rs 37,700 per tonne, despite the strong output. As of December 15, the country's 479 operating sugar mills have produced 77.90 lakh tonnes compared with 60.70 lakh tonnes by 473 mills a year earlier, according to NFCSF data. Cane crushing jumped 25.6 per cent to 900.75 lakh tonnes, the federation said in a statement. Sugar output in Maharashtra, the country's top producing state, more than doubled to 31.30 lakh tonnes from 16.80 lakh tonnes, while Uttar Pradesh production rose to 25.05 lakh tonnes

The fall in prices is prompting industry to demand immediate revision in minimum selling price (MSP) to limit losses, which will improve mills' margins and allow them to make timely cane payments

Sugar industry body ISMA on Wednesday revised its estimates for gross production of the sweetener by 9.5 lakh tonnes to 340 lakh tonnes in the marketing year ending September. In January, Indian Sugar Mills Association (ISMA) had projected the gross sugar production, without any diversion for ethanol, at 330.5 lakh tonnes in 2023-24 marketing year (October-September). In a statement, ISMA said the gross sugar production is now estimated at 340 lakh tonnes in 2023-24, as against the gross output of 366.2 lakh tonnes in the previous year. The executive Committee of ISMA in its meeting held on March 12, noted the sugar recovery, cane yield, remaining harvestable area / sugarcane and expected dates of closure of factories in different States. The panel agreed that sugarcane availability in Maharashtra and Karnataka is higher than expected. However, cane availability in another major state, Uttar Pradesh, is predicted to be lower than earlier estimates. "Accordingly, ISMA has revised

Households have reduced spending on the food item for two decades now, but its production keeps increasing

Over 99 per cent sugar cane dues to farmers in the country have been cleared by mills which amounts to over Rs 1.14 lakh crore out of the Rs 1.15 lakh crore outstanding, Union Minister Piyush Goyal said in the Lok Sabha on Wednesday. He also said that now only Rs 516 crore outstanding is due with regards to three sugar mills in Uttar Pradesh against whom action is being taken. Goyal, Union Minister of Commerce, Industry, Consumer Affairs and food, said in 2013-14, Rs 57,000 crore had been given to farmers as sugar cane price. Cane price dues used to be given to farmers after two-three years. However, in 2022-23, cane production increased by one-and-a-half times and cane dues stood at Rs 1,15,000 crore. "Of this, Rs 1,14,000 crore has been paid to farmers on time which is more than 99 per cent," he said, inviting a sharp response from some opposition members who claimed the figures were not correct. The minister said productivity of the mills has increased, cooperative mills have .

According to the NFCSFL, the country's overall sugar production was down on account of lesser output in Maharashtra and Karnataka

SATARA/SANGLI/SOLAPUR, India (Reuters) - Sugarcane growers in India's top producing states are worried scanty rainfall during the crop's crucial growth period could trim yields and reduce sugar output in the upcoming season, farmers and industry sources told Reuters.

Indian Sugar Mills Association says won't impact consumer price as ex-mill sugar price is already higher

Aid will be given to 24 state-run cooperative mills as loan, arrears will be settled via direct transfers into farmers' bank accounts

A task force constituted by Niti Aayog on sugarcane and sugar industry has recommended a one-time increase of Rs 2 per kg

Demand has emerged from cold drink and ice creams makers that seek to fill pipeline inventory which got diminished during the lockdown due to factory closure and freight disruptions

Sector says new drought-resistant, high-yield and high-recovery cane to be introduced next year

The factories were able to supply only a third of OMC requirements in the second tender

Around Rs 44 billion will be given as soft loans to sugar mills which will also be used for payment of sugarcane arrears