The Indian Sugar & Bio-Energy Manufacturers Association (ISMA), during its Annual General Meeting held today IN New Delhi, outlined a progressive strategy aimed at strengthening India’s sugar and bio-energy sector. The Association reaffirmed its commitment to collaborating with the Government of India and stakeholders to build long-term economic viability, enhance competitiveness, and accelerate sustainable growth across the industry.
Economic viability of the sugar sector
A key concern raised was the decline in sugar prices, which the Association noted are currently below production costs. ISMA stated that a timely upward revision in the Minimum Selling Price (MSP) is crucial not only to ensure the financial stability of sugar mills but also to avoid delays in cane payments to farmers and prevent arrears.
Strengthening Ethanol Ecosystem
ISMA stressed the need for a upward price revision in ethanol procurement for the 2025–26 Ethanol Supply Year, pointing out that prices have remained unchanged for three years despite rising production and operational costs.
The Association also emphasised establishing a level playing field for sugarcane-based ethanol producers, particularly from the private sector, to sustain investments and capacity creation.
To ensure sustained ethanol demand, ISMA will continue to advocate for reduced GST and fiscal incentives for Flex-Fuel and Strong Hybrid Vehicles (FFVs/HEVs). Wider adoption of FFVs is seen as the most scalable solution to fully utilise the ethanol production capacities already created in the country.
Roadmap Beyond E20
To sustain long-term investor confidence, ISMA urged the government to lay out a phased ethanol blending policy beyond E20. The Association also highlighted the opportunity of blending diesel with Iso-Butanol as a significant step toward expanding India’s biofuel portfolio.
Sugar Production Outlook
ISMA reaffirmed its first advance sugar production estimate for 2025–26 at 343.5 lakh tonnes, backed by improved yields, higher recovery rates in major producing states, and special satellite imagery analysis of Maharashtra and Karnataka. Crushing trends indicate a 28% year-on-year rise as of mid-December 2025.
ISMA President Gautam Goel said the industry is at a turning point, stressing the need to address immediate economic distress while preparing for technology-led and diversified growth.
Vice President Niraj Shirgaokar noted that ethanol has emerged as a major pillar of India’s energy transition, calling for timely price revisions and post-E20 clarity to support investments.
Director General Deepak Ballani added that upcoming priorities include digitalised mill systems, advanced cane varieties, and expanded bio-based manufacturing—key drivers of Atmanirbhar and Viksit Bharat ambitions.
ISMA Announces New Leadership
In a major organisational development, ISMA has elected Niraj Shirgaokar as the new President, and Madhav Banshidhar Shriram as the new Vice President for the upcoming term.
The Association expressed gratitude to outgoing President Gautam Goel for steering the industry through crucial policy and market challenges, particularly in ethanol programme expansion and regulatory reforms.
Newly elected President Niraj Shirgaokar said he was honoured to lead the industry at a crucial stage, pledging continued engagement with the government to build resilience and future-ready growth for the sector.
Vice President Madhav Banshidhar Shriram said ISMA will focus on strengthening ethanol capacity, encouraging technological innovation, and promoting sustainability across the sugar value chain.
ISMA reiterated its dedication to a balanced growth model that benefits farmers, strengthens industry viability, and aligns with national energy security and sustainability goals.