News Capsule: Why Raising Sugar MSP Is Necessary: ISMA
27-Dec-2025 10:51 AM
News Capsule: Why Raising Sugar MSP Is Necessary: ISMA
★ India’s Minimum Selling Price (MSP) of sugar has remained unchanged at ₹31/kg since February 2019, while sugarcane FRP/SAP has increased steadily. Since 2018–19, the FRP has risen by nearly 29% to ₹355 per quintal, pushing the cost of sugar production to around ₹41.7/kg.
★ This mismatch has forced sugar mills to sell sugar below production cost, leading to severe financial stress, delays in cane payments, and the risk of farmer distress.
★ The situation has worsened due to bumper production, falling domestic prices, limited export competitiveness, and lower diversion of sugar towards ethanol.
★ ISMA has emphasized that the sugar MSP must be raised to a cost-reflective level and linked to FRP/SAP through a dynamic pricing formula. This would help ensure the financial stability of mills, timely payments to farmers, continuity of the ethanol programme, and overall support to the rural economy.