ISMA Urges Government to Review Sugar MSP Amid Rising Cane Dues

19-Mar-2026 04:19 PM

New Delhi: The Indian Sugar and Bio Energy Manufacturers Association has urged the central government to immediately review and increase the minimum selling price (MSP) of sugar. The request comes as mounting cane dues have put financial pressure on sugar mills, especially in Maharashtra.

According to ISMA, unpaid dues to sugarcane farmers in Maharashtra have risen sharply to ₹4,898 crore as of February 28, 2026, leading to growing discontent among farmers. The association noted that the ongoing sugarcane crushing and production season is now in its final phase, and the industry is eagerly awaiting a government decision on MSP revision.

The industry body highlighted that production costs have increased significantly, while mills’ revenues have declined. This has resulted in severe cash flow stress, forcing mills to sell sugar at a loss. As a consequence, cane payment arrears have surged, with Maharashtra alone accounting for nearly ₹49 billion in outstanding dues.

ISMA pointed out that in the 2024–25 marketing season, cane dues in Maharashtra stood at ₹2,949 crore as of February 28, 2025, which were later cleared. It emphasized that a timely increase in sugar MSP, in line with rising costs, is essential to help mills improve liquidity and ensure prompt payments to farmers.