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.
31 October 2025
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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.
