Govt to Consider Industry's Demand to Hike Minimum Selling Price of Sugar: Food Min Joshi

Union Food and Consumer Affairs Minister Pralhad Joshi on Tuesday said the Centre has allowed exports of 15 lakh tonnes of sugar for 2025-26 marketing year starting October and will look into the industry's demand to increase the minimum selling price of the sweetener.

The minimum selling price of sugar has remained unchanged at ₹31 per kg since February 2019. Sugar industry's apex body ISMA has been demanding that the price be enhanced to ₹40 per kg in view of an increase in production cost.

"In the last 2024-25 season, the prices were stable after we allowed exports of 10 lakh tonnes of sugar. We have recently allowed exports of 15 lakh tonnes of sugar for the 2025-26 season," Joshi told reporters on the sidelines of an event here.

He said the ministry would assess the impact of exports on sugar prices and then look into the demand for increasing the minimum selling price.

India exported about 8 lakh tonnes of sugar in 2024-25 marketing year (October-September) as against an allocation of 10 lakh tonnes.

A senior food industry official also said the government would examine the industry's demand on sugar MSP.

While demanding a hike in sugar minimum selling price, Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has argued that the FRP (fair and remunerative price) of sugarcane has increased 29% to ₹355 per quintal (2025–26) from ₹275 per quintal. This has led to an increase in the cost of production of sugar, which is now estimated at ₹40.24 per kg.

ISMA had suggested to the government to revise the MSP of sugar to at least ₹40.2 per kg for the 2025-26 marketing year.

It also recommend that the government institutionalise the FRP-MSP linkage mechanism to prevent future distortions and ensure timely payment to farmers.

ISMA has projected gross production for 2025-26 at 343.5 lakh tonnes (before diversion to ethanol), as against 296 lakh tonnes in the preceding year.