Current Affairs

Central Government increases Minimum Selling Price (MSP) of Sugar by Rs 2/kg

The Central Government has increased the Minimum Selling Price (MSP) of sugar by Rs. 2 per kg to Rs. 31.
Central Government increases Minimum Selling Price (MSP) of Sugar by Rs 2/kg

What is Minimum Selling Price?

  • Minimum Selling Price is the rate below which the mills cannot sell sugar in the open market to wholesalers and bulk consumers like beverage and biscuit makers.

Reason for the price increase:

  • The decision to increase the minimum selling price has been taken keeping in mind the debt burden of the industry.
  • As per the data provided by the Indian Sugar Mills Association, arrears of sugarcane farmers stood at around Rs. 20,000 crore as of January-end.
  • The increase in the Minimum Selling Price is expected to help millers to make the payment to sugarcane farmers.
  • The Government is also putting in place a mechanism to ensure the benefit due to the increase in the minimum selling price is passed on to the sugarcane farmers.

Other steps taken by the Government to aid the ailing Sugar Mills:

The Government has taken several other steps to help cash-starved mills clear cane dues like:
  • Increase in import duty on sugar to 100 per cent
  • Scrapping of export duty
  • Creation of buffer stock
  • Subsidy for mandatory export of 5 million tonnes in the 2018-19 marketing year

Question:

Q. The Central Government has increased the Minimum Selling Price (MSP) of which agricultural commodity by Rs. 2 per kg to Rs. 31?
a. Cotton
b. Sugar
c. Soyabean
d. Wheat
Central Government increases Minimum Selling Price (MSP) of Sugar by Rs 2/kg Central Government increases Minimum Selling Price (MSP) of Sugar by Rs 2/kg Reviewed by Inderjeet Virdi on February 16, 2019 Rating: 5

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