ISMA President strongly urges the government to increase the MSP of sugar

19-Dec-2024 08:42 PM

The President of the Indian Sugar and Bio Energy Manufacturers Association (ISMA) has called on the Central Government to raise the minimum selling price (MSP) of sugar, citing a significant rise in the production cost of sugar.

According to ISMA's estimates, the production cost for the 2024-25 marketing season is expected to reach Rs 41.66 per kg, driven by an increase in the Fair and Remunerative Price (FRP) of sugarcane.

The ISMA President believes that increasing the MSP could improve the financial condition of the sugar industry.

The President also welcomed the government's decision to lift the ban on using sugarcane juice and syrup in ethanol production for the 2024-25 season.

This move is expected to raise the use of sugar in ethanol production to around 40 lakh tonnes. Furthermore, the President highlighted the need for a review of ethanol pricing, especially for ethanol produced from different sources.

Since 2018, separate pricing rules for molasses-based ethanol have been in place, but with rising costs, there is a pressing need to reconsider the pricing strategy for ethanol.

An increase in prices, according to ISMA, will help the sugar industry achieve its ethanol production targets and recover from the economic losses incurred due to last season’s ban on sugarcane juice/syrup for ethanol production.