rices for High-Density Polyethylene (HDPE) and Polyethene (PE) bags have seen significant increases as of March 2026, driven by rising raw material costs and, in some regions, increased import expenses.
The steep increase is expected to escalate packaging costs, particularly impacting sectors such as sugar, food processing, and consumer goods that rely heavily on PP and PE bags for packaging and transportation.
Speaking to ChiniMandi, Charudatta Deshpande, President of Jaywant Sugar Ltd., stated that the cost of BIS PP bags for sugar packaging has risen from Rs. 23 to Rs. 31 per bag and above.
He noted that this price hike has resulted in increasing the sugar production costs, posing a significant challenge for sugar mills as they struggle to manage this additional strain on their cash flow.
Despande added that they will appeal to the Government to raise the minimum support price (MSP) for sugar to ensure the sustainability of the industry.
The MSP was last increased in 2019, despite successive increases in sugar cane cost. The sugar industry has repeatedly requested the Government to increase the MSP and align it with current cost structures.
The industry feels a timely policy intervention will be instrumental in restoring financial viability, enabling mills to clear farmersтАЩ dues promptly, and ensuring overall market stability, without entailing any additional fiscal burden on the Government.
