The Indian government is considering the sugar industry’s demand to increase the minimum selling price (MSP) of sugar, which has remained unchanged in the past six years. The sugar MSP was last revised to Rs 31 per kg in February 2019, Union Food Minister Pralhad Joshi said on Tuesday. The decision comes after the Centre allowed the export of 15 lakh tonnes (lt) of sugar for the 2025-26 season (October-September).
Whereas, there may be a decision over the next few weeks on the industry’s other demand to increase the ethanol prices when sugarcane-based feedstock is used, the sources added.
Currently, oil marketing companies buy ethanol from sugar-based distilleries at Rs 65.61/litre if directly made from sugarcane juice/syrup, Rs 60.73/litre from B-Heavy molasses and Rs 57.97/litre from C-Heavy molasses. But the highest rate of Rs 71.86/litre is being paid to grain-based distilleries when the ethanol is made from maize.
