Pune — The President of the National Federation of Cooperative Sugar Factories (NFCSF), Harshvardhan Patil, has made a compelling case for raising the Minimum Selling Price (MSP) of sugar to Rs 42 per kg.
This call comes as the Fair and Remunerative Price (FRP) of sugarcane has been consistently increasing each year, leading to a rise in the production costs of sugar. National Cooperative Sugar Federation has formally submitted this proposal, supported by detailed statistical data, to the central government.
The announcement was made following a joint meeting in Pune involving NFCSF officials, Directors of the Union Food and Cooperation Ministries, and the National Cooperative Development Corporation (NCDC). Patil chaired the meeting, which focused on addressing key issues facing the sugar industry.
During a press conference at Pune yesterday, NFCSF President emphasized the urgency of addressing the long-pending issue of increasing the MSP of sugar. NFCSF, in collaboration with the Indian Sugar Mills Association (ISMA), has meticulously calculated the production cost of sugar using reliable data gathered from various organizations across India. This information was submitted to the Union Government on June 3, 2024.
“Our study indicates that the production cost of sugar is continuously rising. The viability of the sugar industry hinges on increasing the MSP to Rs 42 per kg,” explained Patil. He expressed optimism that the Union Cabinet, guided by Prime Minister Narendra Modi’s roadmap for the first hundred days, will make a favorable decision on this matter.
Harshvardhan Patil also highlighted the NFCSF’s success in resolving multiple issues through the Ministry of Cooperation, benefiting both sugar factories and sugarcane growers. Notably, the government’s decision in April to allow sugar mills to use 7 lakh tons of B-heavy molasses for ethanol production has been a significant boon for the industry.
In addition, NFCSF and NCDC are collaboratively working on a scheme to provide sugarcane harvesters for efficient cutting and transportation of sugarcane. These machines will be allocated to cooperative factories based on their crushing capacities, aiding the industry in the upcoming sugarcane crushing season starting October 2024.
Another significant achievement mentioned by Patil was the Centre’s agreement to waive off penal interest of Rs 620 crore and restructure an overdue loan of Rs 812 crore taken from the Sugar Development Fund by cooperative sugar factories. To address the remaining principal and simple interest of Rs 758 crore, a meeting was convened to arrange funds at a concessional interest rate through the NCDC. A new proposal based on this discussion will be submitted to the relevant department.
The NFCSF’s new Board of Directors, elected in February, 2024, comprises representatives from various states including Maharashtra, Gujarat, Karnataka, Uttar Pradesh, Punjab, and Odisha. Mr. Patil acknowledged the support from Prime Minister Narendra Modi and Union Home Minister Amit Shah, who have entrusted him with leading the NFCSF. The Board’s first action was to meet with Home and Cooperation Minister Amit Shah to outline a strategic roadmap for the next ten years of the sugar industry. This roadmap is currently being developed by an expert organization in Mumbai.
Patil praised Cooperation Minister Amit Shah for his significant role in strengthening the cooperative movement and the sugar industry across India.
The Managing Director of the NFCSF, Prakash Naiknavare, also attended the press conference.
