A PTI report, quoting sources, stated a group of ministers headed by Union Home Minister Amit Shah on Wednesday recommended increasing the MSP of sugar by Rs 2 to Rs 33 a kg to ensure mills cleared pending cane arrears of around Rs 20,000 crore. The GoM directed the food ministry to move a Cabinet note with a proposal to hike the MSP of sugar as recommended by the NITI Aayog.
The NITI Aayog had recommended a hike in sugar MSP to Rs 33 a kg, apart from several other measures to augment the commercial viability of the domestic sugarcane value chain. The NITI Aayog recommendation had stated that the existing MSP of Rs 31 a kg did not cover the production cost vis-à-vis the cane fair and remunerative price (FRP) of Rs 275 a quintal, with the state advised prices standing still higher.
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