Indian Sugar Mill Association (ISMA) has opposed the central government’s claim that the government’s initiatives for the industry through various schemes, including the ethanol program, is helping the industry compensate for lower sugar prices.
ISMA, has written a letter to PM objecting to a statement by the Consumer Affairs Minister, that the Government is assisting the Sugar Industry through various schemes and initiatives and therefore, there is no immediate need to increase the MSP.
Niraj Shirgaokar, President ISMA said in a statement “It is extremely important to note that around 80% of the total revenue of a sugar mill or company comes only from sugar and its by-products like powder, ethanol etc contribute only 15-20 % of the total revenue. Therefore, this notion that help of the government in other aspects, including ethanol, is enough to compensate for lower sugar price realization isn’t correct”.
The cabinet committee on Economic Affairs approved Fair & Remunerative Price (FRP) of sugarcane for the Sugar Season 2021-22at Rs 290/- per quintal for a basic recovery rate of 10%. The Ex- mill prices which were approximately Rs 31-32 per kilo from October 2020 till July 2021, have improved slightly in the month of August 2021 and are around Rs 35 per Kilo due to the festival season. ISMA said that it believes the MSP of sugar is increased to Rs 34-35/ Kilo, due to increase of the FRP of sugarcane, there should not be any impact on food or general inflation because of the increase in MSP of sugar.
About ISMA:
Indian Sugar Mills Association (ISMA) is a premier sugar organization in India. It is the interface between Government and sugar industry (both private and public sugar mills) in the country. The prime objective is to ensure that the functioning and interest of both the private and public sugar mills in the country are safeguarded through conducive and growth-oriented policies of the Government.
