ISMA calls for formula-based increase in MSP of sugar to Rs 39.14 per kg
The apex body of India's sugar and bio-energy industry has requested an increase in the MSP of sugar to Rs. 39.14 per kg for the 2024-25 sugar season, as well as a rise in ethanol procurement prices and the establishment of a stable framework for sugar exports.
The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has called for an increase in the Minimum Sale Price (MSP) of sugar, which has remained unchanged at Rs. 31 per kg since February 2019. ISMA has appealed to the government, urging timely policy interventions to support the sustainability of the sugar industry as it confronts rising production costs, stagnant ethanol procurement prices, and a significant anticipated sugar surplus.
The apex body of India's sugar and bio-energy industry has requested an increase in the MSP of sugar to Rs. 39.14 per kg for the 2024-25 sugar season, as well as a rise in ethanol procurement prices and the establishment of a stable framework for sugar exports.
M. Prabhakar Rao, President of ISMA, stated, “Raising the MSP will protect the minimum ex-factory price, particularly during the crushing season when prices tend to fall below production costs, making mills financially unviable. This situation may delay cane arrear payments and, in some cases, result in defaults to farmers. Based on the historical MSP declared by the government, ISMA has been requesting a revision of the MSP to at least Rs. 39.14 per kg, following the same formula used in 2017-18 and 2018-19.”
Deepak Ballani, Director General of ISMA, added, "Withith rising production costs, stagnant ethanol procurement prices, and anticipated surpluses, urgent policy action is needed to ensure the sector's continued stability. Specifically, we are calling for an increase in the MSP of sugar, which has remained unchanged since 2019 despite substantial hikes in cane prices. An adjustment in the MSP is essential to cover rising production costs and help mills make timely payments to farmers."
Ballani also noted, “Additionally, a revision of the ethanol procurement price is necessary to support the government’s 20 percent ethanol blending target by 2025-26, fostering a sustainable shift towards renewable energy. Finally, a long-term export policy would enable effective management of anticipated surpluses, allowing India to strengthen its position in the global sugar market while maintaining a healthy domestic balance.”
ISMA has proposed ethanol prices of Rs. 73.14 per litre for ethanol from sugarcane juice or syrup, Rs. 67.70 per litre for B-heavy molasses, and Rs. 61.20 per litre for C-heavy molasses. Additionally, ISMA has requested the government allow 20 lakh tons of sugar exports this season, along with the establishment of a long-term export policy to manage surplus.
