PILIBHIT: The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) on Monday urged the Union ministry of consumer affairs, food and public distribution to revise sugar and ethanol prices in line with the Fair and Remunerative Price (FRP) of sugarcane.
In a letter to the ministry, ISMA director general Deepak Ballani said the minimum selling price (MSP) of sugar has remained unchanged at Rs 3,100 per quintal since the 2018–19 sugar season, even as the FRP has risen from Rs 275 per quintal in 2018–19 to Rs 355 for 2025–26. He said the current MSP fails to reflect the increased cost of production, which now stands at Rs 4,024.49 per quintal.
Ballani also pointed out that oil marketing companies are offering ethanol prices Rs 5–6 lower than the actual production cost. "This pricing gap places a significant financial burden on mills, forcing them to sell ethanol below cost," he said, warning that such losses could discourage sugar diversion for ethanol production.
Citing production estimates, Ballani said the cost of producing ethanol from B-heavy molasses and sugarcane juice is Rs 66.09 and Rs 70.70 per litre respectively, and should be raised to Rs 70.65 and Rs 76.33 per litre to ensure timely cane payments to 5.5 crore sugarcane farmers across India.
He added that without a revision in prices, the industry could face severe financial strain, delayed farmer payments, surplus sugar stocks due to reduced diversion for ethanol, and setbacks to the govt's 20% ethanol blending target. "Revising prices is critical to protecting both the sugar industry and the livelihoods of millions of cane farmers," Ballani said.
