homebusiness NewsShree Renuka says FRP increase for sugarcane reasonable; expects UP govt to raise advisory price
Shree Renuka says FRP increase for sugarcane reasonable; expects UP govt to raise advisory price
Atul Chaturvedi, executive chairman of Shree Renuka Sugars, on Thursday, said that the government has been reasonable in raising the fair and remunerative price for sugarcane.
Atul Chaturvedi, executive chairman of Shree Renuka Sugars, on Thursday, said that the government has been reasonable in raising the fair and remunerative price for sugarcane.
Sugar stocks gained yesterday, August 25, on the back of a hike in the fair and remunerative price (FRP) to Rs 290 per quintal for sugarcane farmers, but the commerce minister Piyush Goyal ruled out an increase in the minimum selling price (MSP) of sugar for mills.
In an interview to CNBC-TV18, Chaturvedi said, “The government has been quite reasonable in this price increase because it is not something out of the blue and it's a normal price increase, which takes into account the consumer as well as the cane farmers.”
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“However, the elephant in the room is still the state advisory price (SAP), which the state of Uttar Pradesh (UP) may announce at a later date. So we will have to watch what the SAP is in UP,” he said.
On ethanol, Chaturvedi said, “The biggest game-changer for the sugar sector is ethanol thrust, which the government has been promoting because, whether we like it or not, ethanol is environmentally friendly, politically palatable and economically, it makes a lot of sense because the ethanol at this point of time is giving an average purchase price of about Rs 60, but the consumption of petrol is, where it is blended, pays about Rs 105 in that region. So it’s a game-changer because there is no subsidy involved per se and this is also helping the sugar industry get rid of surplus sugar and pay the farmers much more than what had been done in the past.”
For the entire management interview, watch the video
(Edited by : Dipika Ghosh)
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