Centre could raise sugar MSP 10% to Rs 32 a kilo, but there is a caveat

The sugar companies will have to make sure they do not demand any further subsidy from the Centre once the MSP hike has been announced

In a major relief to the beleaguered sugar sector, the Centre is likely to revise the sugar minimum selling price (MSP) by 10 per cent from its current level of Rs 29 a kg to Rs 32 a kg in the weeks ahead.

Last year, the Union food ministry had fixed the ex-factory sugar sale price at Rs 29 a kg to help domestic sugar mills amid falling retail sugar prices and the export-market squeeze owing to a global glut in the sector.

However, following a build-up of sugarcane outstanding and the start of the fresh crushing season 2018-19, the