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Informist, Thursday, Dec. 18, 2025

 

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--Food secy: Actively mulling on demand for hike in sugar minimum sale price 
--CONTEXT: Food Secretary Sanjeev Chopra speaking at ISMA AGM 2025
--Food secy: Hope 1.5 mln tn sugar will be profitably disposed in global mkt
--ISMA head: Hike in minimum sale price of sugar must for viability of mills 
--CONTEXT: ISMA President Gautam Goel speaking at ISMA AGM 2025 
--ISMA head: Rising cane prices hurdle for ensuring timely payments to farmers 
--ISMA head sees 2025-26 sugar closing stock at 6 mln tn 
--ISMA head: Surplus sugar in domestic, global markets weighing on prices 

 

NEW DELHI - The government is actively considering the demands of the sugar industry, including an upward revision in the minimum selling price of sugar, Food Secretary Sanjeev Chopra said.

 

Citing the rise in sugarcane prices, the industry has been urging the government for an output cost-linked upward revision in the minimum selling price of sugar, which is currently at INR 31 per kg, and higher ethanol allocation for sugar-based feedstocks.

 

"We are actively considering all of them (industry demands), and hopefully, in the interest of all stakeholders, we will come up with some kind of an outcome, which would ensure that all the stakeholders of the sugar industry are given their due," Chopra said at the Indian Sugar & Bio-Energy Manufacturers Association's annual general meeting on Thursday.  

 

The industry has flagged concerns over mills' inability to make timely payments to sugarcane farmers amid higher cane prices and weak sugar prices in a sugar surplus year. "Aligning sugar MSP (minimum selling price) with the sugarcane FRP (fair and remunerative prices) is essential for the industry's sustainability and will greatly support timely payments to farmers," ISMA President Gautam Goel said. 

The secretary said cane payments are currently good, but challenges may arise from mid-January as supply peaks and prices weaken. "We have taken that into account, and we will see in the next month or so, we will come out with certain decisions, which would assist the industry and also ensure the timely payment to farmers," Chopra said on the sidelines of the event.

 

Sugar mills are mandated to pay farmers government-fixed prices for sugarcane within two weeks of purchase. For the 2025-26 season, the Centre has hiked the fair and remunerative prices for sugarcane by INR 15 to INR 355 per 100 kilogram. Several states, including Uttar Pradesh, Punjab, and Haryana, have also increased the state-advised prices for sugarcane by INR 15-INR 30 for the current season. According to ISMA, this has raised sugar production costs to around INR 41.66 per kg. 

 

According to Goel, the availability of surplus sugar is weighing on sugar prices, both globally and domestically. The average ex-mill sugar prices in many states have fallen significantly below the cost of production, creating serious financial strain for mills, he added. 

 

Chopra said the government is mindful of the surplus and its implications for farmers, and is actively considering measures to ensure that surplus stocks are "contained". The government might consider allowing higher exports and more sugar diversion for ethanol for the 2025-26 season, he added. 

 

To improve mills' financial health and dispose of the surplus sugar, the government has allowed ethanol production from sugar-based feedstocks and opened sugar exports. Chopra said he hopes the industry takes advantage of the 1.5-million-tonne export quota and disposes of the entire quantity profitably when parity improves. "We are also aware of the fact that export parity is also a bit of an issue. We are hoping that parity will emerge in many areas, maybe when the sugar season in Brazil ends next month," he added. 

 

He also highlighted that the 2026-27 sugar season is expected to be better, making it critical to prevent a build-up of stocks and cane arrears. For the ongoing season, India's gross sugar production is estimated at 34.35 million tonnes, up from 29.61 million tonnes last year, according to ISMA. The season opened with a carry-over stock of 5 million tonnes, raising the total sugar availability to 35.9 million tonnes.

 

With an estimated domestic consumption of 28.5 million tonnes, sugar diversion towards ethanol of around 3.4 million tonnes, and exports of 1.5 million tonnes, ISMA projects the 2025-26 season to close with 6.0 million tonnes of sugar. 

 

Though India is a major sugar producer, Chopra said the country lags behind global benchmarks, like China, in cane productivity and sugar recovery. He said the government is working with research institutes to improve yields through advanced technologies. 

 

The secretary also suggested intercropping of sweet sorghum with sugarcane as the government is looking to diversify the ethanol feedstock basket. Given that sweet sorghum does not require much water and has good ethanol yields, the government has been conducting experiments in Maharashtra and Karnataka. "This is one feedstock which we are hoping would probably give us 120-140 crore (1.2-1.4 billion) litres of ethanol in the coming years, in case we can take up intercropping of sugarcane with sweet sorghum even in one-fourth of the total area," he said.  End

 

Reported by Afra Abubacker

Edited by Tanima Banerjee

 

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