The Indian Sugar & Bio-energy Producers Affiliation (ISMA) has welcomed the Centre’s choice to lift the Truthful and Remunerative Worth (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 an announcement, ISMA mentioned, “ISMA warmly welcomes the Authorities’s choice to extend the Truthful and Remunerative Worth (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 profit almost 5.5 crore sugarcane farmers throughout the nation. Based on ISMA, the hike might generate an extra earnings of over ₹15,000–20,000 crore, taking whole cane funds to round ₹1.3 lakh crore within the upcoming season.
“This can present a powerful impetus to rural demand and reinforce the agricultural financial system, notably in areas the place sugarcane cultivation is a main livelihood,” the assertion mentioned.
Trade backs govt’s ‘proactive method’
Praising the transfer, ISMA mentioned, “ISMA commends the Authorities for its proactive method and responsiveness to the wants of the farming group.”
Name to align sugar MSP, ethanol costs
On the similar time, the business physique flagged considerations over rising price pressures on mills and confused the necessity for coverage alignment. It mentioned, “On the similar time, ISMA respectfully highlights the significance of aligning the Minimal Promoting Worth (MSP) of sugar and ethanol procurement costs with the revised FRP of sugarcane. Such alignment is crucial to make sure monetary sustainability throughout your entire 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 larger prices with out monetary pressure, thereby sustaining operational stability and guaranteeing well timed cane funds to farmers,” it mentioned.
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 steadiness, enhance capability utilisation, and supply long-term coverage certainty to traders and stakeholders,” it added.
Push for larger ethanol mixing targets
Highlighting the broader power context, ISMA mentioned rising crude oil costs and international uncertainties make ethanol mixing extra vital. With an estimated manufacturing capability of almost 2,000 crore litres (together with grain-based ethanol), it referred to as for a roadmap past E20 to larger blends reminiscent of E22, E25, E27, and E85/E100.
The affiliation additionally urged quicker rollout of flex-fuel automobiles and GST rationalisation to spice up demand.
Balanced method wanted
“Such coverage alignment would strengthen the monetary well being of sugar mills, enhance liquidity, and make sure that farmers obtain their dues in a well timed and environment friendly method,” ISMA mentioned.
It added that the federal government is predicted to take a balanced method to assist each farmers and the sugar business in a sustainable method.
