Sugar MSP rises to Rs 31 per kg, set to sweeten margins

Increase in minimum support price could improve the operating margin parameter of several sugar mill companies in sugar season, a Crisil report said. “Raw material cost as a proportion of sugar sales increased to about 90% in the current season following an uptick in the Fair and Remunerative Price of sugarcane, and subdued sugar prices owing to oversupply both locally and globally,” the report added.