Sugar mills have sought hike within the minimal promoting worth (ex-mill) of sugar to ₹39 a kg from ₹31 a kg now.
Deepak Ballani, Director Common of the Indian Sugar & Bio Power Producers Affiliation (ISMA) instructed The Hindu that the retail worth of sugar was nearly flat for the final two years. Nonetheless, the truthful and remunerative worth (FRP) paid to farmers and the conversion prices have been on the rise. There was nearly 11.5 % improve within the FRP within the final two years. The manufacturing value was nearly ₹41 a kg. Additional, the value of ethanol was not revised for the provides made by the sugar mills, he mentioned.
The cane fee arrears to farmers by the sugar mills throughout the nation as on February 6, 2025 for the present sugar season that began on October 1, 2024 have been ₹13,850 crores. In Karnataka, solely 66 % of the overall quantity payable to the farmers was paid whereas in Maharashtra, 84 % was paid (until February 6).
The federal government allowing export of 10 lakh tonnes of sugar had helped the mills, particularly these in Maharashtra and Karnataka. The mills in Uttar Pradesh often had a barely larger realisation for sugar within the home market in contrast with the mills in Maharashtra.
Nearly 75 % of the sugar bought within the home market was bought by institutional patrons and the hike within the minimal promoting worth wouldn’t have an effect on them, he mentioned.
Printed – February 15, 2025 08:59 pm IST
