The government is consulting with other concerned Ministries and Departments and seeking their comments, the Minister stated on demand to increase the Minimum Selling Price (MSP) of sugar.
In response to a unstarred question in the Lok Sabha, Minister of State for Food and Consumer Affairs, Nimuben Jayantibhai Bambhaniya, stated that various representations/suggestions have been received from sugar industry associations and stakeholders to increase the MSP of Sugar. Government is consulting with other concerned Ministries/Departments and seeking comments thereon.
Industry representatives are emphasizing the widening gap between the cost of sugar production and the stagnant MSP for sugar. They claim that despite rising production costs, the sugar MSP has remained unchanged since 2019, creating challenges for sugar producers. To address this disparity, industry bodies in India are actively calling on the government to raise the sugar MSP from the current rate of Rs. 31 to minimum Rs. 39.14 per kg.
She said, “At present, all India average ex-mill price of sugar is at a reasonable level. Further, the sugar mills across the country are able to meet the cost of production of sugar. In addition to the realization from sugar sale, various bi-products such as cane bagasse, cane molasses and press mud are also adding to the revenue of sugar mills. Considering the cost of cane at current level of FRP and conversion cost of sugar, there is sufficient margin of profitability of sugar mills across the country. In order to liquidate excess stock and to maintain ex-mill sugar price at reasonable level, Government of India has allowed export of 10 LMT Sugar during the current Sugar Season. The allocation of 10 LMT export quota will not only enhance the liquidity of the sugar mills across the country but will also help in making timely payment of cane dues to sugarcane farmers. Government has also revised the price of ethanol made from C heavy molasses recently.”
“Government of India has made consistent efforts to ensure timely payment of cane dues to farmers which has resulted in ens FIring _99.9% payment of cane dues to farmers upto previous 2023-24 sugar season. For Current Sugar Season 2024-25 more than 83% of cane dues has been cleared as on 21st March 2025,” she further added.
