ARTICLE 4 #SugarIndustry

Farmers in Karnataka have intensified their demand for the state government and sugar mills to fix the price of sugarcane before the commencement of the crushing season. With the harvesting and crushing period approaching, farmers are urging authorities to announce a fair and remunerative cane price to avoid last-minute disputes and financial losses.

The Indian sugar industry is pressing the government to raise the target for ethanol blending in petrol from the current 20% (E20) to 27% (E27), citing unused capacity and investments made in ethanol production.

Maharashtra’s sugar mills are facing a serious dilemma as an increasing number of farmers are transporting their sugarcane to neighboring Karnataka for processing.

Sugar mills across several regions are reportedly scaling down the number of procurement centers due to ongoing delays in payments to sugarcane farmers. According to industry sources, mills struggling with liquidity issues have found it increasingly difficult to clear dues to growers on time.

A special meeting of the Sugar Advisory Board was held under the co-chairmanship of Ishaq Dar (Deputy Prime Minister) and the Federal Minister for National Food Security, Rana Tanveer Hussain, to review the sugar market situation, imported sugar stocks and the closure of the S-Track portal.

Sugar mill owners across Pakistan have raised strong objections against government policies, claiming that recent administrative decisions have triggered an unprecedented surge in sugar prices.

Tension gripped parts of western Maharashtra, particularly the Kolhapur and Sangli districts, as sugarcane farmers staged protests demanding higher payments for their produce ahead of the 2025-26 crushing season.

For ESY 2025-26, the government has issued a tender for about 10.50 billion litres of ethanol supply. In that total, only 289 crore litres (2.89 billion litres) have been allocated to ethanol produced from sugar-based feedstocks (sugarcane juice, B-heavy molasses, etc) — about 28% of the requirement.

New Delhi, 1 November 2025 – The Indian sugar industry has expressed serious concerns over the government’s ethanol policy for the 2025‑26 supply year, warning that the shift towards grain-based feedstocks could threaten sugar mills’ operations and farmer incomes.

The sugar and ethanol industry in India is under pressure due to rising costs, stagnant minimum selling/ethanol prices and increasing cane prices. Industry bodies have formally demanded a raise in MSP of sugar and the procurement prices of ethanol to ensure viability. The government has acknowledged the demand and is considering action.

The SAP rise is intended to benefit sugarcane farmers in UP by giving them higher assured price for their produce. This can boost their incomes. The increased cost of raw material (cane) squeezes margins, especially when sugar selling prices and ethanol procurement rates are not rising equivalently.

Tensions flared across the sugar-producing regions of North Karnataka as thousands of sugarcane farmers took to the streets on Wednesday, demanding a fair and higher procurement price for their produce.