The central government s nearly 7.7% increase in the fair and remunerative price (FRP) of sugarcane is anticipated to impact the profitability of sugar mills negatively, according to credit rating agency ICRA. However, the sugar industry expects the hike in sugarcane prices to enhance competitiveness against crops like maize and rice.
The government has presented a proposal for diversification of crops such as pulses, cotton and maize, and assured farmers to buy them for five years under MSP with no limitations on quantity