The Centre may additionally enhance ethanol procurement worth for sugarcane-based feedstock, the individuals stated.
The steps would comply with the Centre clearing the export of 1.5 million tonnes of sugar for the 2025-26 season (October-September).
The federal government has maintained the MSP of sugar at ₹31 per kg since February 2019. The business has been pushing for a rise within the worth, citing greater manufacturing prices. A rise in MSP will enhance liquidity for sugar mills, serving to them pay cane farmers.
“In accordance with Part 9 of the Sugar (Management) Order, 2025, and contemplating the 4.42% enhance in FRP (Truthful and Remunerative Value) together with the rise in inflation-linked enter prices, revision of the Sugar MSP to ₹41 per kg is each justified and logical,” the Nationwide Federation of Co-operative Sugar Factories stated in a letter to union minister for meals and public distribution Pralhad Joshi.
Established order on ethanol costs adversely impacts the power of mills to satisfy cane cost obligations, particularly when FRP and different enter prices are persevering with to rise, the business physique stated, within the letter.Ethanol revenues contribute greater than 20% of the entire cane worth payable to farmers. Costs for ethanol produced from B-heavy molasses and sugarcane juice or syrup have remained unchanged since ESY /add full type/ 2022-23.
