Another dose of incentives for sugar mills on cards: MSP hike of Rs 4-5/kg

Move seen helping clear excess sugar stocks, encouraging exports; loan restructuring package for co-ops also under consideration

Following last week’s incentive package under which the price of ethanol was increased, another dose of incentives for over supplied sugar mills are on the
cards.

The package being actively considered includes raising minimum selling prices (MSP) of sugar manufactured by mills to Rs 34 and loan restructuring or similar incentives for cooperative sector sugar mills. Mills have been asking for raising MSP to Rs 37 and earlier, the government of Uttar Pradesh, the largest sugar producing state had recommended price of Rs 34. However, the government seems to have settled for Rs 34-35 as MSP. These measures will foster