India: ISMA strives to promote farmer protection policies, support ethanol targets and stabilize sugar markets

ISMA stressed the need for prompt revision of the minimum selling price (MSP) of sugar to Rs 39.14 per kg in 2024/25, increase in ethanol procurement price and establishment of measures for stable sugar exports, timely payment to farmers, as well as sustaining growth in renewable energy initiatives through ethanol production. The ISMA Chairman said that urgent support from the Government is needed to increase the MSP of sugar to mitigate the losses faced by the industry. The increase in MSP will protect the minimum ex-factory price, especially during the sugarcane crushing season when prices tend to fall below the cost of production, causing mills to incur losses, leading to delayed payments of cane dues to farmers. Thus, revision of MSP is necessary to cover the increased cost of production and help mills make timely payments to farmers. ISMA stressed that since sugar contributes over 85% of the industry’s revenue, the mill price of sugar should be sufficient to cover the cost of ...