The Indian Sugar and Bioenergy Producers Affiliation has appealed to the federal government to instantly revise the minimal promoting worth (MSP) for sugar in order that sugar mills pay farmers and don’t incur losses from January.
The Minimal Promoting Worth (MSP) for sugar was initially launched in June 2018-2019 to deal with the extreme worth disaster arising from home overstocks, international surplus and ex-factory costs under the price of manufacturing inflicting giant backlogs of sugarcane. Sugar mills are dealing with an identical scenario within the 2025-26 sugar season. Though the MSP has remained unchanged at ₹31 per kg for the reason that final revision in early 2019, the continual rise in sugarcane costs and different prices has led to a big rise in the price of manufacturing, mentioned Deepak Bharani, normal secretary of the affiliation.
FRP has elevated from ₹275 per quintal to ₹355 per quintal in 2019-2020 sugar season. The manufacturing price of sugar is roughly ₹41.66 per kg. The rising discrepancy between sugarcane and sugar costs poses a critical problem to the well timed fee of sugarcane costs and the monetary well being of your entire sugar trade.
Home sugar consumption slowed down within the 2024-25 season, falling to 281 million tonnes from 290 million tonnes in 2023-2024.
In accordance with a current ISMA examine on sugar consumption, demand is anticipated to develop at a CAGR of simply 1.5-2.0% over the following 5 years.
Sugar mills must pay farmers inside two weeks of procuring sugarcane. You will get your cash inside the first few months. Nonetheless, if the MSP shouldn’t be revised, the scenario might worsen from January, he mentioned.
