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Government May Hike Sugar MSP, Consider Exports to Address Rising Cane Arrears
Sugar MSP: Concerned about rising sugarcane arrears, the government is considering increasing the MSP and making changes to ethanol allocations. Learn about the significant assurances the Food Secretary has made regarding the payment crisis.
Taking into consideration the expected rise in the number of sugarcane arrears for the month of January, the government has decided to raise the support price and take appropriate steps in this regard. This was stated by Food Secretary Sanjiv Chopra on Thursday.
The Indian Sugar and Bio-Energy Manufacturers Association, or ISMA, has reported that sugarcane arrears have been rising and reached Rs 2,000 crore as of 30 November in Maharashtra. According to ISMA, mills are facing a cash crunch due to oversupply, high production costs, low ethanol allocations, falling domestic prices, and global oversupply.
Speaking during ISMA's annual general meeting, Chopra said, "They (ISMA) have informed us that the problem regarding sugarcane dues will begin in mid-January. We are aware of this deadline and are working on it. In the next one month, we will take some decisions that will help the industry and ensure timely payments to farmers." The government is considering all options to provide relief to farmers. These measures include revising the MSP, allowing exports beyond the current level of 1.5 million tonnes, and increasing allocations for ethanol.
