Union Minister for Consumer Affairs, Food and Public Distribution and New & Renewable Energy, Pralhad Joshi, has said that the government will examine pending demands related to increasing the Minimum Selling Price (MSP) of sugar and the procurement price of ethanol by oil companies in the Group of Ministers (GoM). He also announced that India has already achieved 20% ethanol blending in petrol, and a roadmap is being prepared to reach 25% by 2030.
Joshi was speaking at the Cooperative Sugar Industry Conclave 2025 and National Efficiency Awards Ceremony organized by the National Federation of Cooperative Sugar Factories (NFCSF) in New Delhi. On the occasion, 25 cooperative sugar mills were felicitated for excellence in various categories such as sugar recovery, financial management, and technical efficiency.
Based in New Delhi, NFCSF is the apex body representing 260 cooperative sugar mills and nine state federations. It annually honours high-performing member mills with Efficiency Awards to promote innovation, sustainability, and excellence in the sugar sector.
Ethanol, MSP, and Balance of Interests
Pralhad Joshi emphasised the importance of balancing the interests of sugarcane farmers, sugar mills, and consumers, noting that the sector contributes over ₹1.3 lakh crore annually to the economy. India accounts for 20% of global sugar production and 15% of its consumption is in India. He acknowledged industry demands for a hike in sugar MSP and ethanol prices, assuring that these issues will be addressed.
He also noted the significant investments made by cooperative sugar mills in ethanol production capacity. India has now reached an installed capacity of 1,788 crore litres of ethanol, and the government is working to enable year-round operations of sugar mills by promoting ethanol and bio-CNG production during the off-season.
Reforms and Achievements
The Minister highlighted policy decisions under the Modi government, including reforms in ethanol blending, sugar export, and FRP (Fair and Remunerative Price) hikes. He pointed out that 83% of sugarcane payments for 2024-25 have already been made. Joshi added that the export of 10 lakh tonnes of sugar helped improve domestic prices by ₹3/kg, bringing stability to the industry.
“Cooperatives are essential to India’s journey towards becoming a developed nation,” said Joshi, underlining the government’s support through policy decisions, tax relief, investment facilitation, and backing the cooperative sector. He credited Prime Minister Modi for creating the Ministry of Cooperation and praised Home Minister Amit Shah’s role in promoting cooperative-led warehousing and diversified business models in rural India.
Industry Voices and Suggestions
NFCSF President Harshvardhan Patil urged the government to raise sugar’s MSP to ₹40/kg and ensure a 10-year policy roadmap for industry stability and investor confidence. He thanked the government for providing ₹10,000 crore in soft loans via NCDC and tax relief to cooperative mills but stressed the need for continued support.
Former Union Minister Suresh Prabhu, MoS Nimuben Bambhaniya, and Haryana Cooperation Minister Dr. Arvind Sharma also addressed the gathering, highlighting the socio-economic role of sugar mills.
Technical Seminar on AI in Sugarcane Farming
As part of the International Year of Cooperatives 2025, NFCSF organized a two-day technical seminar on the use of Artificial Intelligence (AI) in sugarcane cultivation. The session was chaired by Dr. Prasanta Kumar Das, Assistant Director General, ICAR, and featured Prataprao Pawar as keynote speaker. Panelists included experts from the Sugarcane Breeding Institute (ICAR) and the Ministry of Agriculture.
Sumit Jha, Secretary of the NFCSF compered proceedings of function.Harshvardhan Patil and the Managing Director of the NFCSF Prakash Naiknavare welcomed the Chief Guests
