NFCSF urges Centre to revise sugar MSP to 41 per kg, increase ethanol price
NEW DELHI: The National Federation of Cooperative Sugar Factories Ltd. (NFCSF), the apex body of sugar cooperatives, has urged the Central Government to immediately revise the Minimum Selling Price (MSP) of sugar. This demand comes in light of rising production costs, declining ex-mill sugar prices, and the increasing financial stress on sugar mills, which could soon lead to a crisis for sugarcane farmers. Meanwhile, the NFCSF applauded the government's decision to permit the export of 15 lakh metric tons (LMT) of sugar for the Sugar Season 202526, stating that this move will address several issues. However, they highlighted the liquidity crisis faced by cooperative sugar mills, which could adversely affect sugar farmers. Harshvardhan Patil, the President of NFCSF, remarked that cooperative sugar mills are owned by millions of farmers, and sustaining the momentum of the current sugar season requires decisive support from the government at this critical time. Early action from the government will enable mills to meet cane payment commitments, protect farmer incomes, and maintain confidence in the cooperative sugar framework, he said. Patil also urged the government to allow an additional diversion of 5 LMT of sugar towards ethanol production, which could generate nearly Rs 2,000 crore. This would directly strengthen cash flows for the mills and facilitate timely payments to sugarcane farmers. The Sugar Season 202526 has begun on a strong note due to early crushing operations and improved yield. As of December 15, 2025, 479 sugar mills across the country have produced 77.90 LMT of sugar, compared to 60.70 LMT produced by 473 mills during the same period last year, marking an increase of 17.20 LMT (28.34%). Cane crushing has also risen by 183.75 LMT (25.61%), with an improving trend in sugar recovery. State-wise performance indicates that in Uttar Pradesh, 120 sugar factories have commenced crushing and processed 264 LMT of sugarcane, achieving an average recovery rate of 9.50%, resulting in the production of 25.05 LMT of sugar compared to 22.95 LMT last year with a recovery rate of 8.90%. In Maharashtra, 190 factories are operational and have crushed 379 LMT of sugarcane, producing 31.30 LMT of sugar with an average recovery of 8.25%, marking a significant increase from 16.80 LMT produced during the same period last season. In Karnataka, 76 factories have started crushing and produced 15.50 LMT of sugar by processing 186 LMT of cane, compared to 13.50 LMT last year. The NFCSF has therefore urged the Government of India to adopt a proactive and forward-looking policy approach to maintain stability in the sector. The Federation emphasized the urgent need for the revision of the Sugar MSP to Rs 41 per kg, an enhancement of ethanol procurement prices, and an additional diversion of 5 LMT of sugar towards ethanol production. This added ethanol production alone could generate nearly Rs 2,000 crore, thereby directly strengthening mill cash flows and supporting timely payments to sugarcane farmers.
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