NEW DELHI: Concerned over mounting cane arrears ahead of Lok Sabha polls, the government Thursday hiked the minimum selling price of sugar by Rs 2 per kg to Rs 31 to help millers clear farmers' dues.
The minimum selling price (MSP) is the rate below which the mills cannot sell sugar in the open market to wholesalers and bulk consumers like beverage and biscuit makers.
"We have increased the minimum selling price of sugar from Rs 29 per kg to Rs 31 per kg.
This will help millers to make the payment to sugarcane growers," Food Minister Ram Vilas Paswan told PTI.
Industry body ISMA had recently said cane arrears stood at around Rs 20,000 crore at the end of January.