New Delhi, Feb 14 (IANS) Union Food and Civil Supplies Minister Ram Vilas Paswan on Thursday said Minimum Selling Price (MSP) of sugar has been increased by Rs 2 to Rs 31 per kg in order to help millers clear pending dues of farmers that now amount to Rs 20,167 crore.

"There have been demands from the millers to hike the MSP as they said their profits were reduced. We expect that the decision to increase the MSP will help them to recover losses and they will clear the (sugar) cane arrears," he told reporters here.

According to the Food Ministry, total arrears to sugarcane farmers, as on February 13, had increased to Rs 20, 167 crore including Rs 7,229 crore in Uttar Pradesh, Rs 4,792 crore in Maharashtra and Rs 3,990 crore in Karnataka.

--IANS spk/vd