Govt hikes sugar MSP by 7% to Rs 31 a kg; mills to get Rs 6,000-cr benefit

Announcement comes as relief for mills burdened by sugarcane arrears

The government on Thursday announced a Rs 2 per kg, or seven per cent, increase in the minimum selling price (MSP) of sugar to Rs 31 per kg. Sugar mills are expected to get a benefit of Rs 6,000 crore from this move. 
 

In June 2018, the government had fixed the minimum price for selling sugar by mills, perhaps for the first time in recent decades. This increased price became the benchmark for all stock with mills and future production.  

However, the mills were seeking more relief because the price was not helping them to pay the mounting farmers'