Urgent Call to Raise Sugar MSP

15-Dec-2025 08:49 PM

New Delhi: The National Federation of Cooperative Sugar Factories (NFCSF), the apex body of cooperative sugar mills, has emphasized the need to increase the ex-factory minimum selling price (MSP) of sugar as soon as possible to protect the interests of sugarcane farmers and ensure the stability of the domestic industry.

A press release issued by the Federation urged the central government to review the MSP on a priority basis, considering the rising cost of sugar production,

the increasing financial burden on sugar mills, the timely payment of dues to sugarcane growers, and the continued stagnation of the sugar MSP despite the long-standing increase in the Fair and Remunerative Price (FRP) of sugarcane.

The Federation welcomed the government's decision to allow the export of 15 lakh tonnes of sugar for the current marketing season (October-September) of 2025-26, stating that this step demonstrates the government's commitment to empowering sugarcane farmers and supporting the sugar industry.

However, the Federation noted that no decision has been taken on the issue of sugar MSP for a long time, even though it is now urgently needed. The ex-factory selling price of sugar was last increased in February 2019, when it was raised by Rs. 200 from Rs. 2900 per quintal to Rs. 3100 per quintal.

According to the Federation, the average cost of sugar production at the all-India level has reached Rs. 4000 per quintal, while the MSP is only Rs. 3100 per quintal. The government should seriously consider increasing the MSP.