Sugar mills have sought hike in the minimum selling price (ex-mill) of sugar to ₹39 a kg from ₹31 a kg now.
Deepak Ballani, Director General of the Indian Sugar & Bio Energy Manufacturers Association (ISMA) told The Hindu that the retail price of sugar was almost flat for the last two years. However, the fair and remunerative price (FRP) paid to farmers and the conversion costs were on the rise. There was almost 11.5 % increase in the FRP in the last two years. The production cost was almost ₹41 a kg. Further, the price of ethanol was not revised for the supplies made by the sugar mills, he said.
