ISMA pegs India’s 2024-25 sugar production at 33.3MT, calls for 26% MSP hike and sugar exports

In its first advance estimate for 2024-25, sugar industry body Indian Sugar and Bioenergy Manufacturers’ Association (ISMA) has pegged India’s sugar production at 33.3 million tonnes, down by 2.24% over previous year. The industry body has demanded that the minimum selling price of sugar, which has not been raised for five years, should be increased to Rs 39.14/kg from Rs 31/kg; up by 26.25%.According to ISMA, unlike food categories like pulses and oilseeds, sugar has had minimal inflation in the last decade. It has demanded an increase in the minimum selling price (MSP) of sugar from Rs 31/kg fixed in 2019 to Rs 39.14/kg.

“The cost of sugarcane has increased due to the increase in the fair and remunerative price (FRP), while the realisation of the sugar mills has been hit due to the ban on sugar exports for two years and the cut in sugar diversion for ethanol last year. Sugar prices too have declined from Rs 37-38/kg during this period of last year to Rs 34-36/kg at present due to the excess stock in the country,” said M Prabhakar Rao, president, ISMA, while speaking with ET.

According to ISMA, India has an opening stock of 84.79 lakh tonnes of sugar as on October 1. With an estimated grand sugar production of 333 lakh tonnes (without diversion for ethanol), the total availability of sugar in the country would be 417.79 lakh tonnes. Internal consumption of sugar is estimated to be 290 lakh tonnes and 40 lakh tonnes would be diverted for ethanol manufacturing, so the closing stock as on September 30, 2025 is estimated to be 87.79 lakh tonnes.

The fall of 7.7 lakh tonnes in sugar production would be mainly due to the fall in sugar production of Maharashtra, where the crop was hit by drought.

ISMA has also asked for permission to export 2 million tonnes of sugar, claiming the country has surplus stock of sugar being carried into the current year from last year’s production.”Sufficient availability of sugar will not only ensure a comfortable stock for domestic consumption and sustain the Ethanol Blending Program (EBP), but also open the room for exports, contributing to maintain the financial liquidity of sugar mills, enabling timely payments to farmers,” said Rao.The sugar industry is also facing competition from the grain-based ethanol manufacturers. “The share of the sugar-based ethanol in the total ethanol used under the EBP programme has declined from about 70-75% two years ago to about 40% in 2024-25 ethanol supply year based on the recent tender allocation. The price of ethanol made from sugarcane has also not been increased for the last two years,” said Rao.

ISMA and other regional industry associations have written to the central government that they are afraid of delay in cane payments to farmers if their financial situation does not improve.