New Delhi: National Secretary of the Rashtriya Lok Dal (RLD), Anupam Mishra, confirmed that RLD National President and Union Minister of State (Independent Charge) for Education, Chaudhary Jayant Singh, has written to Union Minister for Consumer Affairs, Food, and Public Distribution, Prahlad Joshi, urging action in the interest of sugarcane farmers. The letter highlights the need to permit sugar exports and revise the Minimum Support Price (MSP) for sugar.
Referring to his earlier communication dated August 6, 2024, Chaudhary Jayant Singh of Rashtriya Lok Dal reiterated the demand for approval to export at least 2 million tonnes of sugar during the current sugar season. In the letter, he outlined challenges faced by the sugar industry, which are adversely impacting timely payments to sugarcane farmers.
Challenges in the Sugar Industry
The letter emphasized several pressing issues:
- Falling Sugar Prices: The ex-mill price of sugar has dropped to around ₹35 per kilogram, below the production cost and significantly lower than prices during the same period last year.
- Excess Stock Burden: Beyond the standard stock of 5.5 million tonnes, an additional surplus of 2.8 million tonnes is expected, increasing the financial burden on sugar mills due to carrying costs.
- Stagnant MSP: The MSP for sugar has not been revised since February 2019, when it was set at ₹31 per kilogram, despite rising production costs.
Recommendations to Support the Industry
In his letter, Chaudhary Jayant Singh urged the government to:
- Approve the immediate export of at least 2 million tonnes of sugar.
- Revise the MSP for sugar, taking into account changes in the Fair and Remunerative Price (FRP) of sugarcane over the past 50 years.
He argued that these measures would provide much-needed financial relief to the sugar industry, enabling mills to pay farmers promptly, manage operational costs, and invest in expansion and modernization.
Potential Benefits of Sugar Exports
The letter also highlighted how permitting sugar exports would help India generate foreign exchange, stabilize domestic sugar markets, and create a robust platform for the global trade of Indian sugar.
Chaudhary Jayant Singh’s appeal underscores the critical role of the sugar industry in supporting rural economies and the urgent need for government intervention to address the growing financial challenges faced by sugarcane farmers and mills. The response from the central government is awaited.
