The Cabinet's decision to retain the fair and remunerative price (FRP) of sugarcane at Rs 275 per quintal will ensure viability of sugar mills, said Abinash Verma, director-general of Indian Sugar Mills Association (ISMA).
The government has kept the minimum price sugar mills pay to sugarcane growers for the next marketing year which will start from October.
"Let us accept and understand that politically reducing the price of any crop that the government of India keeps - I don’t think that it is practical or is possible... I have never seen ever in the history that any price of any crop is reduced by the government... to keep it at the same level is a brilliant decision and excellent decision because that will ensure the viability of the sugar mills," he said in an interview with CNBC-TV18.
"That is an excellent decision because the industry was unable to pay to the farmers because the sugar prices were depressed so this way we should be in a better position to pay to all the farmers and the cane price arrear should not be as much as last year," he added.
Talking about further expectation from government, Verma said, “We are expecting immediately two decisions from the government.. one is on the export front and second is ethanol procurement price for the next season.” “This is the right time to announce export policy with whatever subsidies that the government is providing under the WTO."