Maharashtra demands higher sugar MSP and relaxed export restrictions
State government pushes Centre for Rs 41/kg minimum support price and eased trade controls.
Maharashtra's government has formally requested the Centre to increase the minimum support price (MSP) for sugar to Rs 41 per kilogram and relax existing export restrictions on the commodity. The state, one of India's largest sugar producers, argues that current price levels are insufficient for farmers and mills operating in the sector.
State officials highlighted that the proposed Rs 41/kg rate would provide better returns to sugarcane growers and make domestic sugar production more economically viable. They also contend that easing export curbs would help clear excess inventory and improve market conditions for local producers. The request comes amid ongoing challenges faced by Maharashtra's sugar industry, which employs thousands of farmers and workers across the state.
India has periodically imposed restrictions on sugar exports to manage domestic supply and control prices for consumers. These measures have impacted sugar mills' profitability and created storage concerns. Maharashtra's appeal reflects broader industry pressure on the Union government to recalibrate its approach to sugar trade policy while protecting farmer interests.
The state's sugar sector contributes significantly to Maharashtra's agricultural economy, particularly in regions like Kolhapur and Sangli. Any policy changes could have far-reaching implications for rural incomes and the viability of sugar mills across western India. The Centre's response to this demand will likely influence sugar availability, pricing, and export opportunities in coming months.
Industry analysts suggest that balancing domestic supply needs with export opportunities remains critical for sector sustainability. The government will need to weigh consumer price concerns against farmer welfare and industry competitiveness when reviewing Maharashtra's request.
Source: Indian Express
