The government is expected to implement a reasonable hike, though it will fall short of the industry's demands.
The industry has been advocating for an MSP increase to40-41 per kilogram.
"The industry has been asking for a revision of MSP or minimum selling price essentially to make this as a kind of an institutional, rather institutionalise the whole process because fair and remunerative price (FRP) keeps getting increased and the minimum selling price doesn't move.
"In the month of May only we were able to cross 15% of ethanol blending.
Based on the current progress, I am reasonably confident that the 20 per cent blending target will be completed by the year 2025," he added.
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Shares of sugar companies rallied up to 15% in trade Thursday (June 13) after reports emerged that the central government is considering raising the minimum selling price (MSP) of sugar for the upcoming 2024-25 season, beginning on October 1, 2024.Sugar stocks that captured investor's eyeballs included Shree Renuka (up 11.62%), Bajaj Hindusthan Sugar (15.03%), Dhampur Sugar Mills (6.70%), KCP Sugar and Industries Corp (15.31%), and Dwarikesh Sugar Industries (7.91%).Among others were Balrampur Chini (up 3.92%), Dalmia Bharat Sugar and Industries (7.28%), Magadh Sugar & Energy (8.08%%), Rana Sugars (8.37%) and Mawana Sugars (13.78%).The current MSP of the sweetener is31 per kilogram and has not been changes since 2019.According to the report, the MSP of sugar is expected to be revised for the upcoming sugar season rather than the current one. The government is expected to implement a reasonable hike, though it will fall short of the industry's demands. The industry has been advocating for an MSP increase to40-41 per kilogram."The industry has been asking for a revision of MSP or minimum selling price essentially to make this as a kind of an institutional, rather institutionalise the whole process because fair and remunerative price (FRP) keeps getting increased and the minimum selling price doesn't move. So if this is increased then it will send the right signal and it will also give the signal to the farmers that their money is going to be assured in future as the industry is not going to lose money," said Atul Chaturvedi, Executive Chairman at Shree Renuka On Tuesday, Hardeep Singh Puri, who assumed charge as the Minister for Petroleum and Natural Gas in the Narendra Modi 3.0 government, said that India was on track to achieve its 20% blending target by next year.The Union minister said that India successfully achieved the 15% ethanol blending target in May.He emphasised the accelerated goal originally set for 2030, demonstrating the country's commitment to enhancing its energy matrix."In the month of May only we were able to cross 15% of ethanol blending. Based on the current progress, I am reasonably confident that the 20 per cent blending target will be completed by the year 2025," he added.
