The sugar trade association AISTA on Wednesday demanded that the government increase the minimum selling price of sugar as the sweetener is being sold at a lower price than the cost of production in the country.
The minimum selling price of sugar has been kept unchanged at Rs 3,100 per quintal since 2019 even though the fair and remunerative price of sugarcane has increased every year.
The All India Sugar Trade Association has made a representation in this regard to Food Secretary Sanjeev Chopra.
"Sugar was sold as low as Rs 3,100 to Rs 3,200 per quintal in Maharashtra and Karnataka during the November-March period of the current 2022–23 season, which is 10% lower than the cost of production," AISTA Chairman Praful Vithalani said.
The minimum selling price should be more than the cost of production, which ranges from Rs 3,400 to Rs 3,600 per quintal, he said.
In its representation, AISTA said the government increased the FRP of sugarcane in the last four sugar seasons (October-September), but there has been no corresponding increase in the minimum selling price.
"Therefore, the government may consider increasing the minimum selling price of sugar, which will also encourage farmers to increase sugarcane plantations in the country," it said.
That apart, the trade body has demanded the government extend the benefit of the Remission of Duties and Taxes on Export Products scheme to sugar.
Under the RODTEP scheme, duties and taxes are remitted at a fixed rate on export products in the "free category" only. Since sugar was kept under the "restricted" category, traders are not getting the benefit at present.
AISTA is of the view that the benefits should be extended, as sugar was placed in a "restricted category" not because of the shortage but to regulate exports. "Due to technical reasons, the RODTEP benefits to sugar should not be withdrawn," it added.
India is the world's second-largest sugar producer after Brazil. The government has allowed exports of 6 million metric tonnes in the current 2022–23 season.
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