Sugar Prices May Rise by Rs 11 as Government Considers Increasing MSP

With rising inflation in recent times, the economic calculations of common people have been severely affected. The increasing prices of several daily essentials have significantly raised household expenses. Now, if the central government agrees to the demands made by farmers and sugar associations, the cost of sweet food may also skyrocket. The primary reason is the ongoing demand for an increase in the Minimum Selling Price (MSP) of sugar, which has remained unchanged since 2019. If the government raises the MSP of sugar, its market price is expected to rise substantially.

Food and Consumer Affairs Minister Pralhad Joshi stated that the government will soon make a decision regarding the increase in the minimum selling price of sugar. Currently, the MSP of sugar is Rs 31 per kg, a rate that was fixed in February 2019. However, with rising production costs in the sugar industry and the financial struggles faced by sugar mills, there has been a persistent demand to raise the MSP.

Union Minister Joshi confirmed, “There is a demand to increase the MSP. Our department is aware of the issue, and we will soon decide whether to increase it or not.”

Also Read | Government to soon decide on suger MSP, says Pralhad Joshi.

The Indian Sugar and Bioenergy Manufacturers Association (ISMA) and the National Cooperative Sugar Mills Federation have urged the government to raise the MSP of sugar to Rs 39.14 per kg or Rs 42 per kg.

According to ISMA, an increase in the MSP of sugar will help improve the financial health of sugar mills across the country. However, if the MSP is raised as per the demand, it will result in a significant financial burden on consumers, making sugar more expensive.