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AISTA urges government to revise MSP of sugar, ethanol rates

05 May 2025 Evaluate

In the view of rising production costs and economic pressure faced by sugar mills, All India Sugar Trade Association (AISTA) has urged the government to revise the minimum selling price (MSP) of sugar, and ethanol rates. The MSP of sugar remains unchanged at Rs 31 per kg since February 2019. Even the ex-mill price of ethanol made from sugarcane juice and B-heavy molasses has been kept unchanged at Rs 65.60 per litre and Rs 60.70 per litre, respectively, since 2023-24.

But the sugarcane support price or fair and remunerative price (FRP) has been increased every year. It has been increased by Rs 15 to Rs 355 per quintal for the upcoming 2025-26 season beginning October.

According to AISTA, the FRP for sugarcane has been increased by 29 per cent (including the latest hike) since 2019. The mills in states like UP that fix State Advice Price (SAP) have to bear a much higher cost of sugarcane. Additionally, input costs including wages, chemicals, transportation, packing materials etc, have seen a significant increase over the past six years. The alignment of the MSP of sugar with the current costs, therefore, is of paramount importance.

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