Sugar industry leaders in Karnataka have called on Chief Minister Siddaramaiah to head a delegation to the Central Government to press for a significant increase in the Minimum Selling Price (MSP) of sugar — from the current ₹31 per kilogram to ₹42 per kilogram.
The appeal was made in a memorandum submitted by the South Indian Sugar Mills Association (SISMA), which warned that local sugar mills face financial strain this year due to higher payments owed to farmers, reduced ethanol allocations from oil marketing companies, and the absence of a sugar MSP revision.
SISMA president Yogesh Shrimant Patil highlighted potential losses for mills and urged the chief minister not only to push for the MSP hike but also to secure central support for power purchase rates (suggesting ₹6.5 per unit for surplus electricity produced by sugar mills) and full procurement of ethanol produced by mills.
Under state order, millers were directed to pay ₹3,300 per tonne of sugarcane for standard recovery rates — a cost structure that adds to industry pressure amid stagnant MSP levels. Industry observers say the MSP hike is critical as costs of production have risen sharply in recent years, and MSP has not been revised since 2019, despite growing calls from sugar cooperatives and federations for a review.
