Archive · 19 Dec 2025
Government Considers Measures to Address Sugar Surplus
The Indian government is thinking about ways to help the sugar industry because there is too much sugar being made.
They want to let more sugar be sold to other countries and make more ethanol from sugar to use in fuel.
The price of sugar has not been updated in a long time, and this is making it hard for farmers to get paid on time.
The government is also thinking about increasing the price they pay for sugar to help farmers.
They are worried that if they don't do something, there will be too much sugar and farmers won't be able to sell it all.
Government considering allowing more sugar exports and increasing MSP to manage surplus supplies.
Sugar production estimated at 34.3 million tons, with domestic consumption at 28.5 million tons.
Ethanol diversion at 3.4 million tons, with current exports at 0.15 million tons due to low global prices.
Cost of sugar production at Rs 41.66 per kg, with MSP unchanged at Rs 31/kg since 2019.
Initial cane arrears estimated at Rs 2000 crore, with ISMA urging FRP hike to prevent further arrears.
- Who
- Indian Sugar and Bio-energy Manufacturers Association (ISMA) and Government of India
- What
- Considering measures to address sugar surplus, including MSP revision, increased exports, and ethanol diversion
- When
- Current sugar season (2025-26) and next month for government decisions
- Where
- India
- Why
- To protect farmers from cane arrears and manage surplus sugar stocks
- Sugar Production
- 34.3 million tons
- Domestic Consumption
- 28.5 million tons
- Ethanol Diversion
- 3.4 million tons
- Exports
- 1.5 million tons
- Cost of Production
- Rs 41.66 per kg
- MSP
- Rs 31/kg (unchanged since 2019)
- FRP
- Rs 355/quintal (increased by 29%)
- Cane Arrears
- Rs 2000 crore (initial estimates)
- Ethanol Production Capacity
- 9000 million litres
- Ethanol Allocation
- 2890 million litres (28% share)
Sources
ISMA Urges Sugar MSP Revision After 6 Yrs; Ethanol Price Hike Amid 34MT Surplus
Govt mulls sugar MSP hike, ethanol push to prevent stock buildup; decision likely in January
Cane arrears start building up, govt considering proposal to allow more sugar exports & hike in MSP