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Government Increases Sugar MSP By Rs 2 To Rs 31 Per Kg

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Capital Market
Last Updated : Feb 15 2019 | 1:04 PM IST

With the aim of benefiting Sugar farmers and in order to clear their arrears/cane dues, the Union Government has decided to increase the Minimum Selling Price (MSP) of Sugar from Rs. 29 to Rs. 31 for the year 2019-20. This announcement was made by the Union Minister of Consumer Affairs, Food and Public Distribution, Ram Vilas Paswan yesterday.

Addressing media after the announcement, the Minister asserted that the main objective of the Prime Minister NarendraModi led government is to ensure farmers' welfare and growth and this move is another step in that direction. Shri Paswan expressed confidence that the hike in MSP will lead to increased income and savings for the Sugar Mills which will then be passed on to the Sugarcane farmers.

The Department of Food and the State governments will also be able to monitor the sale of Sugar at the new, revised MSP rate so as to ensure that the Sugar Mills are utilising their increased liquidity to pay farmers' dues. As on 13th February, 2019, the Farmers' dues amount to Rs. 20167 crores while the same computed at FRP amounts to Rs. 18157 crores.

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First Published: Feb 15 2019 | 12:42 PM IST

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