Government Forms Committee to Address Sugarcane Farmers’ Concerns, Review Sugar MSP

The panel, headed by former NITI Aayog member Ramesh Chand, will examine sugarcane returns, sugar mill viability, recovery testing and deductions for mechanically harvested cane.

The Government of India has constituted a committee under the chairmanship of Prof. Ramesh Chand, former Member of NITI Aayog, to examine issues raised by sugarcane farmers and recommend measures to address their concerns, the Ministry of Agriculture and Farmers Welfare announced on Wednesday.

The committee has been formed following a meeting between representatives of sugarcane farmers from Karnataka and Maharashtra and the Union Ministers for Agriculture and Farmers Welfare, and Consumer Affairs, Food and Public Distribution.

The panel will examine demands for higher remunerative returns to sugarcane farmers, taking into account cultivation costs and other relevant factors. It will also review the demand for a revision of the ex-mill minimum selling price (MSP) of sugar, considering production costs, market realisations and the financial viability of sugar mills.

Review of Sugar Recovery and Weighment Practices

The committee will examine existing mechanisms for testing and reporting sugar recovery, along with measures to ensure transparent verification of recovery rates. Sugar recovery is a key factor in determining the quantity of sugar produced from sugarcane and has implications for the economics of sugar production.

The panel will also review sugarcane weighment practices at mills, including the adequacy of calibration, inspection and verification mechanisms. These measures are intended to address concerns about the accuracy and transparency of the weighing process.

Another key issue is the deduction in the recorded weight of mechanically harvested sugarcane. The committee will examine prevailing practices and assess the extent of any actual losses arising from mechanised harvesting. It will also evaluate the financial impact of these practices on the cane prices payable to farmers. The panel may take up other related matters it considers necessary.

Stakeholder Consultations Planned

The committee will consult a broad range of stakeholders, including farmers’ representatives, sugar mill associations, state governments, experts and other relevant organisations. It will submit a report containing its findings and specific recommendations as early as possible for consideration by the competent authority.

The committee comprises the Agriculture Commissioner in the Ministry of Agriculture and Farmers Welfare, the Joint Secretary (Sugar) in the Department of Food and Public Distribution, and the Joint Secretary (Legal Metrology) in the Department of Consumer Affairs.

Ramesh Chand to Head the Committee

Prof. Ramesh Chand is an agricultural economist and public policy expert with extensive experience in agricultural development, farmers’ issues, food security, agricultural markets and pricing policy. He served as a Member of NITI Aayog from 2015 to 2026. Before that, he was Director of the ICAR-National Institute of Agricultural Economics and Policy Research (ICAR-NIAP) and a Member of the Fifteenth Finance Commission.

The committee’s recommendations are expected to inform the government’s consideration of issues affecting sugarcane farmers and the financial sustainability of the sugar industry.