This world is full of challenges and opportunities. Like it led to the temporary shutdown of many businesses five years ago when COVID-19 hit the world. However, extreme bad came with minor good. For example, the Air Quality Index improved during that period when these factories did not emit carbon for a long time.

The same is the case with product manufacturing companies which had their fair share of lows and are now leaping to new highs with better opportunities. Sugar manufacturing units are no exception to that. So what exactly has been happening with the sugar industry for the last year? We will be throwing light on the main highlights of the last sugarcane season and how some branded sugar companies managed to come out of it victorious.

1. Restrictions on B-Heavy molasses

The ban was introduced by the Government of India towards the end of last year. As the country was facing a drop in sugarcane crop production due to heavy rainfall and red rot disease, the Union Government passed an order for sugar mills to use C-heavy molasses. This step was taken to meet the internal sugar consumption needs of India. Later in April this year, the GOI allowed these units to make the most of sugar mill processes and use B-heavy molasses for ethanol.

2. FRP Hike

The Indian Government put a price bracket of Rs three hundred and forty per quintal on procurement of sugarcane for the season of 2024-2025. The authorities also decided not to introduce any more recovery rates, protecting the interests of farmers. Hence, they declared that there would be no recovery in case it is below 9.5%. But they will fetch an amount of Rs 315.1 per quintal for their sugarcane crop. This Fair and Remunerative Price or FRP was 8% higher for Sugar Season 2024-25 if we consider the base year SS 2023-24.

3. SAP Hike

The Uttar Pradesh government revised the State Advised Price of sugarcane for SS 2023-24. As per the new price revision, the farmers started getting Rs 370 per quintal instead of Rs 350 for an early-sown variety of sugarcane. Similarly, the price for the general variety of sugarcane was increased from Rs 340 to Rs 360 per quintal. It benefited farmers as much as it served branded sugar companies with a variety of quality sugarcane crops.

Conclusion

During all these major changes, the society commission rate remained at Rs 5.50 per quintal. On the other hand, the rebate for lifting sugarcane from outside and transporting it to the sugar mill saw a slight hike from Rs 8.35 per quintal to Rs 9 per quintal. The sugar industry understands the importance of MSP needing an enhancement and remains optimistic for the same.