The government is likely to take a decision on increasing the minimum selling price (MSP) of sugar within the next few days, Union Food Secretary Sanjeev Chopra said on Saturday.
Speaking on the sidelines of a conference organised by All India Sugar Trade Association (AISTA), Chopra said, “We are discussing the MSP (proposal). In the coming days, we will hopefully take a call.”
MSP of sugar has remained unchanged at Rs 31 per kg since 2019, despite annual hikes in the fair and remunerative price (FRP) paid to sugarcane farmers.
Industry bodies, including National Federation of Cooperative Sugar Factories (NFCSF), have urged the government to raise the MSP to at least Rs 42 per kg to help mills sustain operations amid rising production costs.
Chopra noted that sugar production for the 2024-25 season (October-September) looks promising, with the area sown to sugarcane increasing to 58 lakh hectare so far from 57 lakh hectare during the same period last year.
For the 2023-24 season, sugar production is estimated at 32 million tonne, lower than 32.8 million tonne in the previous season, but sufficient to meet the domestic demand of 27 million tonne.
Earlier, addressing the event, the food secretary also mentioned that the agriculture ministry is conducting research to evaluate water requirements for ethanol production from various feedstocks, with preliminary findings suggesting that ethanol from sugarcane may require less water than ethanol from maize and rice.
Meanwhile, G20 Sherpa Amitabh Kant on Saturday advocated for a “long-term predictability and consistency policy” for the sugar sector, which he said would be crucial in making India a developed economy by 2047.
Kant’s comments come as the industry presses for lifting a sugar export ban and increasing the minimum selling price of sugar in line with cane prices, among other demands.
“I totally agree that we need a long-term predictability and consistency of the policy. Otherwise, it will be difficult for the sector,” Kant said at a conference organized by All India Sugar Trade Association (AISTA).
Highlighting the sector’s importance, Kant noted that sugar contributes 1.1 per cent to the country’s GDP and plays a pivotal role in reducing crude import bills, energy transition, promoting circular economy, and achieving net zero emissions.
“The sugar industry will be a major driver to make India a developed economy by 2047,” he added.
Kant urged the industry to explore diversification beyond ethanol and invest in research for developing high-yielding, low water-consuming cane varieties, given India’s limited water resources compared to the top producer Brazil.