MSP hike to boost sugar mills' margins 300-400 bps: Report

MUMBAI: The hike in the minimum support price for sugar to Rs 31 a kg is likely to lead to a 300-400 basis points increase in operating margins of mills in the current sugar season, says a report. According to a Crisil report, this will lead to incremental domestic sales realisation of Rs 3,300 crore, while higher export prices will generate another Rs 200 crore. On February 14, the government had announced a 7 percent increase in the minimum support price to Rs 31 per kg from Rs 29 for sugar.