Govt to review industry’s demand for higher sugar MSP

18-Nov-2025 06:29 PM

New Delhi. The Union Minister for Food, Consumer Affairs and Public Distribution has stated that the government has permitted the export of 1.5 million tonnes of sugar in the current marketing season (October-September) of 2025-26 and that the industry's demand for an increase in the ex-factory minimum selling price (MSP) of sugar can now be considered.

It is noteworthy that the MSP of sugar was last increased by ₹200 from ₹2,900 per quintal to ₹3,100 per quintal in February 2019.

It has remained unchanged since then, while the fair and remunerative price of sugarcane has increased annually. The apex industry body, ISMA, is urging the government to fix the sugar MSP at ₹4,000 per quintal due to the high input costs.

According to the Food Minister, the domestic market price of sugar remained relatively stable due to the government's permission to the industry for 1 million tons during the 2024-25 season.

Now, recently, approval has been granted for the export of 1.5 million tons of sugar for the 2025-26 season.

The impact of this export on sugar prices will be assessed, and only then will a decision be made on whether to increase the MSP.

During the 2024-25 marketing season, approximately 800,000 tons of sugar was exported from the export quota of 1 million tons.

The industry attributes this to the delay in export approval, granted in January 2025, despite the marketing season having begun in October 2024. This did not provide sufficient time for export.

This time, given the potential for a significant increase in domestic production, the government decided early to allow exports. The increase in the MSP of sugar may further improve its domestic market price.