News Capsule: Govt Weighs Sugar MSP Hike as Industry Flags Rising Production Costs
18-Nov-2025 04:17 PM
News Capsule: Govt Weighs Sugar MSP Hike as Industry Flags Rising Production Costs
★ The central government has approved the export of 1.5 million tonnes of sugar for the 2025–26 marketing year starting October, and will now examine the industry’s demand to raise the minimum selling price (MSP) of sugar.
★ Sugar MSP has remained unchanged at ₹31 per kg since February 2019. According to ISMA, the fair and remunerative price (FRP) of sugarcane has increased from ₹275 to ₹355 per quintal, pushing the cost of sugar production up to ₹40.24 per kg. The industry is therefore seeking an MSP revision to at least ₹40.2 per kg.
★ In 2024–25, the government had permitted 1 million tonnes of sugar exports, but actual shipments were around 800,000 tonnes.
★ ISMA has projected sugar production for 2025–26 at 34.35 million tonnes (before ethanol diversion), higher than 29.6 million tonnes last year.