In June 2018, the Centre had announced a Rs 7,000 crore package to ease liquidity in the sugar sector, while fixing MSP of white (refined) sugar at Rs 29 a kg. Besides, the Cabinet Committee on Economic Affairs (CCEA) announced the creation of buffer stock of 3 million tonnes (MT) of sugar.
Besides, the government had written to the Centre demanding increase in the state sugar sale quota to 1.1 MT per month and hiking the ex-factory sugar sale price from Rs 29 a kg to Rs 32.50. The state government had apprised the Centre that UP mills held unsold inventory of nearly 96,000 tonnes pertaining to last year and in the current season, the mills were expected to produce 12.5 MT of sugar, thus adding to inventory further.