Representative image of sugar.
Credit: iStock Photo
New Delhi: Union Food and Consumer Affairs Minister Pralhad Joshi on Tuesday said that the government will look into the industry's demand to increase the minimum selling price of sugar.
The minimum selling price of sugar has remained unchanged at Rs 31 per kg since February 2019. Sugar industry has been demanding that the price be enhanced to Rs 40 per kg in view of an increase in production cost.
"In the last 2024-25 season, the prices were stable after the government allowed exports of 10 lakh tonnes of sugar. The government recently allowed exports of 15 lakh tonnes of sugar for the 2025-26 season," Joshi told reporters on the sidelines of an event here.
He said the ministry would assess the impact of exports on sugar prices and then look into the demand for increasing the minimum selling price.
India exported about 8 lakh tonnes of sugar in the 2024-25 marketing year (October-September) as against an allocation of 10 lakh tonnes.
While demanding a hike in sugar minimum selling price, Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has argued that the FRP (fair and remunerative price) of sugarcane has increased 29 per cent to Rs 355 per quintal (2025–26) from Rs 275 per quintal. This has led to an increase in the cost of production of sugar, which is now estimated at Rs 40.24 per kg.
ISMA had suggested the government to revise the MSP of sugar to at least Rs 40.2 per kg for the 2025-26 marketing year.
It also recommends that the government institutionalise the FRP-MSP linkage mechanism to prevent future distortions and ensure timely payment to farmers.
ISMA has projected gross production for 2025-26 at 343.5 lakh tonnes (before diversion to ethanol), as against 296 lakh tonnes in the preceding year.