Industry’s Call for Action on MSP 

The sugar industry in Maharashtra, represented by the West Indian Sugar Mills Association (WISMA). It has raised serious concerns that many sugar mills may not start their crushing operations this season. The industry has issued an urgent memorandum to the union government. Requesting an increase in the minimum selling price (MSP) of sugar and a hike in ethanol prices. WISMA emphasized that this demand must be met by November 15 to prevent major disruptions to the crushing season, which could have severe impacts on sugarcane farmers as well.

Rising FRP Complicate Mills’ Financial Viability

WISMA noted that the government’s delay in raising the MSP has been a financial setback for the sugar industry. The MSP of sugar has remained unchanged since 2019. Despite yearly increases in the Fair and Remunerative Price (FRP) for sugarcane. This gap, according to WISMA, has placed immense financial pressure on sugar mills. By contributing to a growing debt burden that could lead to adverse economic consequences for both the industry and sugarcane farmers.

Sugar Industry’s Role in Rural Economy

WISMA highlighted the sugar industry’s crucial role in the rural economy, describing it as the second-largest contributor and a key source of income for many farmers and laborers. Despite its significant role, the industry claims it has received limited support from both the central and state governments. WISMA has also pointed out that while the FRP continues to rise annually. The government has been unresponsive to calls for a corresponding MSP increase. Which the industry argues is necessary for its sustainability and to meet its FRP obligations.

Consequences of a Narrow Policy Focus

While the union government collaborates with the Commission for Agricultural Costs and Prices (CACP) each year to determine the FRP, WISMA contends that the government’s policy focus has been narrow, prioritizing only FRP hikes and enforcement of payments from mills while neglecting the need for an MSP hike. According to WISMA, this approach could lead to dire consequences, potentially destabilizing the entire industry. Without intervention, WISMA warns, the upcoming crushing season may be at risk, jeopardizing the industry and the government’s ethanol-blending program and leaving sugarcane farmers without timely payments.

Conclusion

The sugar industry in Maharashtra faces critical challenges as MSP and ethanol price stagnant. By threaten to halt the upcoming crushing season. With an urgent plea to the government for support, WISMA cautions that the industry’s financial stability and the livelihoods of sugarcane farmers are on the line.





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