Possible Crushing Halt Against Price Disputes

Maharashtra’s sugar mills are sounding the alarm over the upcoming cane-crushing season. They are warning that without swift government action on sugar and ethanol pricing, operations could face significant delays. The West Indian Sugar Mills Association (WISMA) has urged the central government to raise the minimum selling price (MSP) of sugar by at least $0,08 per kg and increase ethanol prices by $0,06-$0,08 per liter. Industry leaders are asking for a clear response by November 15 to avoid a potentially disruptive halt to the season—a situation that would heavily impact both mill operations and the incomes of local sugarcane farmers.

Financial Squeeze on Sugar Mills

The last time the government adjusted the sugar MSP was back in 2019. Since then, production costs have surged, leaving many sugar mills financially squeezed despite regular hikes in the Fair and Remunerative Price (FRP) paid to farmers. WISMA argues that this stagnation in sugar prices, combined with rising operational costs, has pushed mills to the brink. Mills are concerned about mounting debt and warn that without an MSP hike, many may struggle to stay afloat, impacting thousands of farmers who rely on timely payments.

Vital Role of the Sugar Industry in Rural Economies

The sugar industry isn’t just about sugar; it’s a cornerstone of Maharashtra’s rural economy and a crucial source of income for farmers and local workers. WISMA emphasizes that while the industry supports countless families across the state, it receives minimal financial aid from the government. With FRP rising annually, they argue that an increase in the sugar MSP is essential to keep mills financially healthy so they can continue to pay farmers on time.

Concerns Over Ethanol Program and Farmer Payments

Each year, the government sets the FRP based on input from farmers and industry representatives. While FRP has risen steadily, WISMA says the government has overlooked calls to raise the MSP, focusing instead on lump-sum payments to farmers. This one-sided approach, WISMA cautions, could destabilize the sugar industry, jeopardizing not only the crushing season but also the government’s ethanol-blending program, which relies heavily on sugar by-products. Without urgent action, delayed payments to sugarcane farmers may add stress to the already delicate rural economy.

Conclusion:  

The sugar industry in Maharashtra finds itself at a critical crossroads, with mills pressing for essential price adjustments to remain financially viable and continue supporting rural communities. WISMA’s call for a swift response from the government reflects the urgency to secure fair pricing for sugar and ethanol, which could prevent a ripple effect of delayed crushing, economic strain on farmers, and disruption of the ethanol program. As November 15 approaches, all eyes are on government officials to act in time to stabilize this vital sector.





Click here to reach our trading platfrom CMBroker