Call to Revise Sugar and Ethanol Prices Amid Rising Production Costs

The All India Sugar Trade Association (AISTA) urges the Indian government to reassess sugar's Minimum Selling Price (MSP) and ethanol’s ex-mill rate due to increasing production costs and economic pressures. Current sugar and ethanol prices remain unchanged, risking financial health for mills and farmers.

The All India Sugar Trade Association (AISTA) has appealed to the government to revise the Minimum Selling Price (MSP) of sugar and ethanol, citing escalating production costs and mounting economic pressures faced by sugar mills.

Despite an increase in the Fair and Remunerative Price (FRP) of sugarcane, which is up by Rs 15 to Rs 355 per quintal in the forthcoming season, the MSP for sugar has not been adjusted since 2019. This stagnation, coupled with unchanged ethanol prices, puts sugar mills in a precarious position.

The association warns that failing to update the MSP and ethanol rates in line with the current cost structures risks financial distress for sugar units, potentially impacting the broader economy and weakening the nation's ethanol blending programme.