Politics
Sharad Pawar and Narendra Modi meet and spark speculation
The central government's decision to increase the fair and remunerative price (FRP) of sugarcane and the steady decline in the selling price of sugar have plunged the sugar industry in the state.
In order to provide relief to them, NCP president Sharad Pawar demanded an immediate increase in the minimum selling price of sugar from Prime Minister Narendra Modi.
Read also: The state budget under pressure: Maharashtra demands increase to 19.43% in total allocation
The central government has increased the FRP of sugarcane by INR 250 per tonne and fixed the rate at INR 3,400 for the current sugarcane season. Over the past five years, the fair and economic price of sugarcane has increased by 107 percent, and farmers are benefiting.
But on the other hand, due to non-increase in the sales rate of sugar and the purchase rate of ethanol in proportion to the “FRP”, the sugar industry is in financial crisis.
On one hand, the FRP is increased, but on the other hand, the minimum selling price (MSP) of sugar is INR 31 per kg from 2018. Meanwhile, the price of sugar in the domestic market is not continues to fall, and now the price has increased from Rs.3000 to Rs.3350 per quintal.
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