Government Plans Hike in Sugar MSP and Ethanol Prices for 2024-25 - Read Here
The Indian government is planning to raise the minimum selling price (MSP) of sugar and increase ethanol prices, according to Food Minister Pralhad Joshi. The government is also reviewing the possibility of sugar exports for the upcoming 2024-25 season. These discussions were announced by Joshi at an industry conference on Thursday.
The petroleum ministry is involved in the decision-making process related to the hike in ethanol prices, which are set by the government. Minister Joshi stated, "The petroleum ministry is actively considering this issue, and we are working closely with them to decide on increasing ethanol prices."
The prices of ethanol have not been raised since the 2022-23 ethanol supply year (November to October). The current prices for ethanol are ₹65.61 per litre for ethanol made from cane juice, ₹60.73 per litre for ethanol produced from B-Heavy molasses, and ₹56.28 per litre for C-Heavy molasses. The government is now considering revising these prices to reflect current market conditions.
Regarding sugar exports, Minister Joshi explained that the government would review the 2024-25 sugar production and availability before making any decisions on export limits. He also expressed optimism about the sugar production for the upcoming season, which starts in October, due to favourable monsoon conditions.
In addition, the minimum selling price (MSP) of sugar, which has been fixed at ₹31 per kg since February 2019, is also under review. A committee of secretaries is discussing a proposal to raise the MSP to ensure better returns for sugar producers.
The decision to increase the MSP and ethanol prices is expected to support sugar mills and boost ethanol production, which is a key part of India's ethanol blending program. These potential changes are aimed at helping farmers and sugar mills, while also promoting a greener, more sustainable energy future through increased ethanol production.
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