ISMA Pushes for Sugar Price Hike Amid Rising Production Costs

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) is lobbying for an increase in the minimum selling price (MSP) of sugar, proposing a rise from Rs 31 to Rs 39.14 per kg. This increase aims to accommodate the rising production costs and ensure financial stability for sugar mills.

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has urged the government to raise the minimum selling price (MSP) of sugar from the current Rs 31 to Rs 39.14 per kg. According to ISMA, the price hike is crucial to offset the soaring production costs that have been pressing the industry.

In its recent statement, ISMA pointed out that while the Fair and Remunerative Price (FRP) of sugarcane has surged fivefold, the MSP has not kept pace, remaining stagnant since February 2019. The FRP has now reached Rs 340 per quintal for the upcoming sugar season of 2024–25.

Current ex-mill prices, hovering around Rs 36.5 per kg, are insufficient to cover the costs which average Rs 41.66 per kg. ISMA President M Prabhakar Rao emphasized the urgent need for government intervention to safeguard the financial viability of mills and ensure timely payments to farmers.

(With inputs from agencies.)