| New Delhi |
Updated: July 15, 2020 10:22:48 am
The authorities on Wednesday could take a call to hike the minimal promoting value of sugar by Rs 2 per kg to Rs 33 per kg from the prevailing Rs 31 per kg.
According to sources, a Group of Ministers headed by Home Minister Amit Shah, which is scheduled to fulfill on July 15, could approve a proposal of elevating the minimal promoting value of sugar. The proposal has been moved by the Ministry of Consumer Affairs, Food and Public Distribution.
The authorities suppose tank, NITI Aayog too has favored a hike within the minimal promoting value of sugar.
The transfer comes at a time when the dues of sugarcane farmers have reached to round Rs 22,000 crore in June this 12 months and the ex-mill costs of sugar have dropped to Rs 31-31.50 per kg throughout lockdown. However, the demand has began selecting up after unlockdown and sugar costs too have improved marginally.
According to the Indian Sugar Mills Association (ISMA), sugar manufacturing within the nation throughout 2020-21 is estimated to be round 305 lakh tones. This implies that there shall be surplus sugar availability in the course of the coming season, which generally begins from October.
The final time the federal government hiked the minimal promoting value of sugar was in February this 12 months when it was elevated to Rs 31 per kg.
In June 2018, the Centre had launched the idea of fixing the minimal promoting value of sugar to assist sugar mills in paying the dues to sugarcane farmers.
Issuing an order beneath provisions of the Essential Commodities Act, 1955, the federal government had mounted Minimum Selling Price (MSP) of white/refined sugar at Rs. 29/kg with impact from June 7, 2018.
While fixing the minimal promoting value of sugar, the centre takes two elements under consideration: the parts of Fair & Remunerative Price (FRP) of sugarcane; and minimal conversion price of probably the most environment friendly mills.
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