Raising the MSP for Sugar is Essential

08-May-2026 08:52 PM

New Delhi: Following the government's decision to increase the Fair and Remunerative Price (FRP) for sugarcane by ₹10 per quintal, demands to raise the ex-factory Minimum Selling Price (MSP) for sugar have once again begun to gain momentum.

According to industry observers, the FRP for sugarcane is set to rise to ₹365 per quintal for the new 2026-27 marketing season, which commences this coming October. This will result in increased production costs for both sugar and ethanol—a financial burden that the industry will have to bear.

Notably, the Commission for Agricultural Costs and Prices (CACP) itself has recommended that the Central Government review the selling price of ethanol produced from sugarcane. According to industry analysts, there has been no revision or increase in the MSP for sugar over the past five to six years, whereas the FRP for sugarcane has seen an upward revision almost every year.

Consequently, the cost of sugar production has risen significantly; yet, the government continues to disregard the industry's demand to raise the sugar MSP beyond the current ₹3,100 per quintal and fix it at a level between ₹3,900 and ₹4,000 per quintal.