The government has raised the floor price of sugar by Rs 2 to Rs 31 a kg to help millers clear cane arrears, which touched Rs 20,167 crore on February 13. Now, mills will not be able to sell sugar at mill gate for less than Rs 31 a kg. In retail, the sugar is also likely to be costlier for consumers who are paying around Rs 38 for one kg of sugar.
Food minister Ramvilas Paswan said the government has raised the minimum selling price (MSP) of sugar to help farmers get their cane arrears. The MSP is the minimum price at which millers sell sugar in the open market to wholesalers and bulk consumers at mill gate.