India’s Cooperative Sugar Industry seeks 25% hike in minimum selling price to stabilise sector
NFCSF urges government to raise sugar MSP to align with production costs and support industry sustainability.
INDIA – India’s National Federation of Cooperative Sugar Factories (NFCSF) has requested a 25% rise in the minimum selling price (MSP) of sugar to stabilise prices and safeguard the long-term sustainability of the sector.
In a letter addressed to Sanjeev Chopra, Secretary at the Union Ministry of Food and Consumer Affairs, the NFCSF proposed increasing the MSP from Rs 3,100 (US$34.95) to Rs 3,900 (US$43.98) per quintal for the upcoming sugar season beginning 1 October.
Prakash Naiknavare, Managing Director of the NFCSF, stated the change would “benefit cooperative sugar mills and enhance price stability” without fuelling inflation.
According to the letter, the ex-factory price of sugar in the current season has ranged between Rs 3,860 (US$43.52) and Rs 3,940 (US$44.43) per quintal, while the MSP remains at Rs 3,100 (US$34.95). The NFCSF argued the increase is necessary to reflect actual production costs and align statutory prices with prevailing market rates.
The Federation said such a revision would not affect consumer prices, noting that “the market rates are already within this range” and the “current retail price does not influence the inflation index.”
For the 2025–26 production year, the Indian sugar industry expects to produce 35 million tonnes, supported by favourable monsoon conditions in Maharashtra and Karnataka. Of this, 4.5 million tonnes are expected to be diverted for ethanol production and 2 million tonnes for export.
India recently lifted restrictions on ethanol production from sugarcane juice, syrup and various molasses types for the 2025–26 season, allowing mills and distilleries to produce biofuel without quantitative limits.
However, total sugar production this year is estimated at around 31 million tonnes, down from 34 million tonnes the previous year, including diversions for ethanol and exports. Approximately 26.2 million tonnes are projected to be available for domestic consumption.
The lower availability is attributed to unseasonal rainfall and pest infestations in the sugar belt. The NFCSF contends that an MSP increase would provide statutory support to prevailing ex-mill prices and promote stability in India’s sugar sector.
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