The government is likely to take a decision on increasing the minimum selling price (MSP) of sugar within the next few days, Union Food Secretary Sanjeev Chopra said on Saturday.
Speaking on the sidelines of a conference organised by the All India Sugar Trade Association (AISTA), Chopra said, "We are discussing the MSP (proposal). In the coming days, we will hopefully take a call." MSP of sugar has remained unchanged at Rs 31 per kg since 2019, despite annual hikes in the fair and remunerative price (FRP) paid to sugarcane farmers.
Industry bodies, including the National Federation of Cooperative Sugar Factories (NFCSF), have urged the government to raise the MSP to at least Rs 42 per kg to help mills sustain operations amid rising production costs.
Chopra noted that sugar production for the 2024-25 season (October-September) looks promising, with the area sown to sugarcane increasing to 58 lakh hectares so far from 57 lakh hectares during the same period last year.
For the 2023-24 season, sugar production is estimated at 32 million tonnes, lower than 32.8 million tonnes in the previous season, but sufficient to meet the domestic demand of 27 million tonnes.
Earlier, addressing the event, the food secretary also mentioned that the agriculture ministry is conducting research to evaluate water requirements for ethanol production from various feedstocks, with preliminary findings suggesting that ethanol from sugarcane may require less water than ethanol from maize and rice.
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