Sugar selling below cost of production; hike minimum selling price: AISTA to govt.

The All India Sugar Trade Association (AISTA) has urged the government to raise the minimum selling price of sugar due to prices falling below production costs. Despite the fair and remunerative price (FRP) of sugarcane increasing annually, the minimum selling price has remained unchanged at ₹3,100 per quintal since 2019. AISTA also requested the extension of benefits from the Remission of Duties, Taxes On Export Products (RODTEP) scheme to sugar, as it is currently categorized as ‘restricted’ for export purposes.

Sugar trade body AISTA on Wednesday demanded that the government should increase the minimum selling price of sugar as the sweetener is being sold at prices lower than the cost of production in the country.

The minimum selling price of sugar has been kept unchanged at ₹3,100 per quintal since 2019 even though the fair and remunerative price (FRP) of sugarcane has been increased every year.

The All India Sugar Trade Association (AISTA) has made a representation in this regard to Food Secretary Sanjeev Chopra.

"Sugar was sold as low as ₹3,100-3,200 per quintal in Maharasthra and Karnataka during November-March period of the current 2022-23 season, which is 10% lower than that of cost of production," AISTA Chairman Praful Vithalani said.

The minimum selling price should be more than the cost of production, which ranges from ₹3,400 to ₹3,600 per quintal, he said.

In the representation, AISTA said the government had increased the FRP of sugarcane in the last four sugar seasons (October-September), but there has been no corresponding increase in the minimum selling price.

"Therefore, the government may consider increasing the minimum selling price of sugar, which will also encourage farmers to increase sugarcane plantation in the country," it said.