NITI Aayog had also recommended a hike in sugar MSP to Rs 33/kg, apart from several other measures to augment the commercial viability of the domestic sugarcane value chain. The NITI Aayog recommendation had stated that the existing MSP of Rs 31/kg did not cover the production cost vis-a-vis sugarcane's fair and remunerative price (FRP) of Rs 275/quintal, with the state-advised prices standing still higher.
Over the past few months, the industry has been persistently urging the Centre to facilitate the settlement of outstanding dues - buffer subsidy, export subsidy, interest on soft loan subsidy etc.
Pointers Domestic sugar industry expecting sugar relief package States have demanded hiking the minimum selling price (MSP) of Rs 31/kg ISMA has demanded an MSP hike of 16% to almost Rs 36/kg Lockdown estimated to slash sugar demand by 0.5 MT this season Industry wants announcement of buffer stock subsidy, export programme