A delegation led by Chief Minister Devendra Fadnavis, along with ministers and sugar industry leaders, urged the Centre to assist the struggling sugar industry. They requested measures such as a special scheme for loan restructuring, a hike in Minimum Selling Price, and 100% ethanol procurement allocation for Maharashtra. The delegation also sought the lifting of the sugar export ban and a rise in sugar’s Minimum Selling Price to Rs 43 per kg.
The delegation highlighted that the current sugar MSP of Rs 31 per kg is insufficient due to rising production costs. They emphasized that an increase to Rs 43 per kg is necessary to stabilize sugar mills’ finances and ensure prompt payments to farmers. The delegation noted that this adjustment is unlikely to significantly impact consumer prices but could boost government revenue through GST.
Stressing the financial strain on sugar mills, the delegation pointed out the disparity between the rising cost of sugar production and the stagnant MSP. They emphasized the need for a price revision to alleviate economic losses faced by sugar mills. Additionally, the delegation underscored the importance of the Ethanol Blending Programme for national energy security amid global uncertainties.
The delegation urged the fixing of ethanol prices to maintain economic viability and support the blending programme. They requested distinct prices for B-Heavy Molasses and Sugarcane Juice/Syrup-based ethanol to ensure financial sustainability. Furthermore, the delegation emphasized the importance of a balanced allocation between sugarcane-based and grain-based ethanol to optimize capacities and benefit sugarcane farmers.
