During the Annual General Meeting of the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) held today, Food Secretary Sanjeev Chopra indicated that the government is actively considering a revision of the sugar Minimum selling Price (MSP). He highlighted that sugar production for the 2025–26 season is estimated at 343 lakh metric tonnes (LMT), noting that the next sugar season is expected to see better production.
Addressing concerns over exports, Chopra said that the export parity issue is being closely monitored and that clarity is expected to emerge by next month. He emphasized that the government is working to prevent excessive stock buildup while safeguarding the interests of sugarcane farmers.
Deepak Ballani, Director General of ISMA, said, “There is sufficient ground for an MSP revision this year. Cane arrears are already building up. As per reports, cane arrears in Maharashtra as of November 30 stand at Rs. 2,000 crore.”
Gautam Goel, outgoing President of ISMA, stated that sugar has a low weight in the CPI basket and that a sugar MSP revision would entail no fiscal burden on the government. An upward revision of the MSP is essential, he said.
He further highlighted that ISMA is looking at an increase in the sugar MSP to ₹41.66 per kg, which would cover production costs. Aligning the sugar MSP with the sugarcane Fair and Remunerative Price (FRP) is essential for the industry’s sustainability and would significantly support timely payments to farmers. Ethanol prices for different feedstocks should be aligned with the sugarcane FRP in accordance with the formula proposed by ISMA. The government should also bring parity in ethanol allocation, which would help optimize capacities and strengthen the industry’s contribution to the national ethanol blending programme.
“Government should develop sugar mill complexes as local energy hubs. The sugar industry urges the government to establish a National Sugarcane Development Board to accelerate policy decisions. Sugar exports should be included in bilateral discussions and free trade agreements (FTAs) with other countries,” he added.
