Emphasis on the Need to Hike Sugar's Minimum Selling Price

15-Jun-2026 07:32 PM

Mumbai: A leading industry analyst and executive director of a major sugar company states that a significant hike in the ex-factory Minimum Selling Price (MSP) of sugar could provide a major boost to the 'Green Ethanol' program. Increased revenue would incentivize sugar companies to ramp up capital investment in the green energy sector. Addressing the 'Sugar-Ethanol and Bio-Energy India Conference' held in Mumbai last week, the analyst emphasized that increasing ethanol production is crucial for India.

The sugar MSP was last raised in February 2019, when it was increased by ₹200 per quintal—from ₹2,900 to ₹3,100. Since then, the industry has consistently demanded a further hike, but the government has not acceded to the request.

Meanwhile, the cost of sugar production has surged due to annual increases in the Fair and Remunerative Price (FRP) of sugarcane. The industry is urging the government to raise the ex-factory MSP of sugar to at least ₹3,800 per quintal.

The FRP for sugarcane was set at ₹275 per quintal for the 2019-20 season and has since risen to ₹365 per quintal (100 kg) for the 2026-27 season.

According to the analyst, the country's surplus sugar stocks should be exported rather than merely stored. There is a need for serious deliberation on export strategies, and the production of green energy—including ethanol—must be scaled up to a level where exports become feasible. This is essential for the future.