The Indian sugar industry has long been urging the central government to revise the minimum selling price (MSP) of sugar, citing a consistent rise in production costs. Echoing these demands, Maharashtra Deputy Chief Minister Ajit Pawar has called for an increase in the MSP, stating that the industry cannot sustain itself at the current rates.
Speaking at a seminar held at the Vasantdada Sugar Institute in Pune, Pawar said, “The sugar MSP is Rs 31 per kg, and currently, sugar is trading at Rs 37. But unless the MSP is increased to Rs 40 per kg, the industry cannot sustain. Therefore, we will work in this direction to resolve it, along with the state government and the agriculture department.”
The central government first introduced an MSP for sugar in June 2018, setting it at Rs 29 per kg when the Fair and Remunerative Price (FRP) for sugarcane was Rs 2,550 per tonne. While the FRP has seen steady hikes, rising from Rs 2,550 per tonne in 2017–18 to Rs 3,400 per tonne in the 2024–25 season, the MSP for sugar has remained unchanged at Rs 31 per kg since February 2019.
In a recent move, the Union government approved a Rs 15 per quintal increase in the FRP of sugarcane for the 2025–26 crushing season. The new FRP for upcoming season stands at Rs 3550 per tonne, based on a 10.25% sugar recovery rate.
Industry stakeholders have raised concerns over the widening gap between the rising cost of sugar production and the stagnant MSP. They argue that without a corresponding hike in the sugar MSP, producers are facing mounting financial pressure. Various industry bodies have also intensified their demand for the government to revise the MSP to Rs 40 per kg.
During the event, Harshvardhan Patil, President of the National Federation of Cooperative Sugar Factories (NFCSF) also raised the issue of sugar MSP.
The seminar, themed “Use of Artificial Intelligence to Increase Sugarcane Productivity,” was jointly organized by the Vasantdada Sugar Institute, Agricultural Development Trust (Baramati), Maharashtra State Cooperative Sugar Factories Federation Ltd., and the West Indian Sugar Mills Association. The event was held in the presence of Sharad Pawar, President of the Vasantdada Sugar Institute.
