India's Sweet Shift: Sugar Export Increase and Pricing Debate

The Indian government has approved the export of 15 lakh tonnes of sugar for the 2025-26 marketing year while considering demand for an increase in the minimum selling price. Industry leaders argue that production costs have risen, necessitating a price hike from Rs 31 to Rs 40 per kg.

The Indian government has set the stage for significant developments in the sugar industry by permitting the export of 15 lakh tonnes for the upcoming 2025-26 marketing year beginning in October. The announcement was made by Union Food and Consumer Affairs Minister Pralhad Joshi on Tuesday.

The minimum selling price (MSP) of sugar has remained stagnant at Rs 31 per kg since 2019, despite increased production costs. Industry leaders, particularly the Indian Sugar & Bio-Energy Manufacturers Association (ISMA), are pushing for a revised MSP of Rs 40 per kg.

In response to the rising cost, propelled by a 29% increase in the fair and remunerative price of sugarcane, ISMA recommends establishing an FRP-MSP linkage mechanism. The government promises to assess the impact of sugar exports on domestic prices before making any decisions.

(With inputs from agencies.)