India’s Sugar industry has demanded that the ex-mill minimum selling price (MSP) of Sugar be increased 24 per cent to Rs 36 per kg from Rs 29 per kg to help push exports without financial assistance from the government.
Since Centre has asked for compulsory export of 20 per cent of the production, which is estimated at about 7 million tonnes for the 2018-19 season starting October 1.
International trade houses like Alvean, COFCO, SUCKDEN have informed that the Indian Sugar exports have good chance to succeed from October 2018 to January 2019, when other large exporters like Brazil and Thailand are not in the market.
The industry body, which has now started accepting exporters and traders as associate members, has claimed that increasing the MSP to Rs 36 per kg would solve most of the problems being faced by the industry.
The advantages are that there will be no need of financial assistance, no need for collection of any cess or levy, no need of monthly release quota, no cane price arrears.