ARTICLE 2 #India Agri News

New Delhi, September 25, 2025 – The Indian Sugar & Bio‑Energy Manufacturers Association (ISMA) has formally appealed to the central government to increase the Minimum Selling Price (MSP) of sugar to ₹40.2 per kilogram for the 2025‑26 season, citing severe cost pressures and the widening gap between production costs and current sugar pricing.

India’s ethanol production has grown rapidly, with blending levels rising significantly over the past six years. Ethanol supply grew from under 200 crore litres and a 5% blending rate in FY19 to more than 820 crore litres and a 19.9% blending rate in FY25.The country reached its milestone of 20% ethanol blending (E20) in March 2025, five years ahead of the original 2030 target. This progress has been driven by capacity expansion, feedstock diversification, and stable pricing policies.

India’s aggressive drive to expand ethanol production is triggering significant shifts in what farmers plant — and raising fresh concerns about food, oilseed, and resource security.

A major shift is coming to how the UAE taxes sweetened beverages. Beginning 1 January 2026, the country will move from a flat excise tax system to a tiered, sugar‑content‑based model for drinks.