Sugar mills association writes to PMO, demands hike in MSP

The Indian Sugar Mills Association has written to the Prime Minister’s Office (PMO) demanding an immediate increase in the minimum sale price from the current ~31 per kg to at least ~34-35 per kg. The association claims the hike will help it clear the pending sugarcane dues ahead of the new crushing season that will start from October. Increasing the MSP of sugar by ~3-4 per kg will bring its price closer to the existing ex-mill sugar price of ~34-35 per kg and, therefore, won’t have any impact on the retail price of sugar for consumers. MSP is the minimum rate at which sugar mills are required to sell their sugar, however, the current price being sold by the mills is higher than the minimum price.