The Indian Sugar & Bio-energy Producers Affiliation (ISMA) has welcomed the Centre’s determination to boost the Honest and Remunerative Value (FRP) of sugarcane by ₹10 per quintal to ₹365 for the 2026–27 sugar season, calling it a powerful enhance for farmers and the agricultural financial system.
FRP raised to ₹365 per quintal
In a press release, ISMA stated, “ISMA warmly welcomes the Authorities’s determination to extend the Honest and Remunerative Value (FRP) of sugarcane by ₹10 per quintal for the 2026–27 sugar season to ₹365 per quintal. This progressive and farmer-friendly step displays the Authorities’s continued dedication to strengthening farmer welfare and enhancing rural prosperity.”
5.5 crore farmers to achieve
The revised FRP is predicted to learn almost 5.5 crore sugarcane farmers throughout the nation. In line with ISMA, the hike may generate a further earnings of over ₹15,000–20,000 crore, taking whole cane funds to round ₹1.3 lakh crore within the upcoming season.
“It will present a powerful impetus to rural demand and reinforce the agricultural financial system, significantly in areas the place sugarcane cultivation is a major livelihood,” the assertion stated.
Business backs govt’s ‘proactive strategy’
Praising the transfer, ISMA stated, “ISMA commends the Authorities for its proactive strategy and responsiveness to the wants of the farming neighborhood.”
Name to align sugar MSP, ethanol costs
On the identical time, the business physique flagged issues over rising value pressures on mills and harassed the necessity for coverage alignment. It stated, “On the identical time, ISMA respectfully highlights the significance of aligning the Minimal Promoting Value (MSP) of sugar and ethanol procurement costs with the revised FRP of sugarcane. Such alignment is crucial to make sure monetary sustainability throughout your complete worth chain—from farmers to sugar mills.”
Increased FRP raises enter prices for mills
ISMA famous that whereas the FRP hike helps farmers, it additionally will increase uncooked materials prices for mills. “A proportionate revision in sugar MSP and ethanol procurement costs would allow mills to soak up these greater prices with out monetary pressure, thereby sustaining operational stability and making certain well timed cane funds to farmers,” it stated.
Ethanol mismatch provides to emphasize
The affiliation additionally pointed to decrease ethanol allocation, which has led to a mismatch between put in distillation capability and home offtake, leading to underutilisation and monetary stress.
“A well timed revision in sugar and ethanol pricing, together with equitable ethanol allocation, is crucial to revive feedstock stability, enhance capability utilisation, and supply long-term coverage certainty to buyers and stakeholders,” it added.
Push for greater ethanol mixing targets
Highlighting the broader power context, ISMA stated rising crude oil costs and international uncertainties make ethanol mixing extra important. With an estimated manufacturing capability of almost 2,000 crore litres (together with grain-based ethanol), it known as for a roadmap past E20 to greater blends reminiscent of E22, E25, E27, and E85/E100.
The affiliation additionally urged sooner rollout of flex-fuel automobiles and GST rationalisation to spice up demand.
Balanced strategy wanted
“Such coverage alignment would strengthen the monetary well being of sugar mills, enhance liquidity, and be sure that farmers obtain their dues in a well timed and environment friendly method,” ISMA stated.
It added that the federal government is predicted to take a balanced strategy to assist each farmers and the sugar business in a sustainable method.
