📍 New Delhi, India — With India’s sugar production rising sharply this season, the Indian Sugar and Bio‑energy Manufacturers Association (ISMA) has urged the government for GST relief and policy support for biofuels in the upcoming Union Budget 2026‑27 to help stabilize the sector and address financial stress. According to the latest industry figures, all‑India sugar output reached about 159.09 lakh tones as of January 15, 2026, marking a 22 % increase over the same period last year. The number of operational sugar mills has also climbed to 518, up from 500 a year ago, reflecting robust crushing activity in key producing states. Maharashtra led production gains, with output rising about 51 %, while Uttar Pradesh and Karnataka reported increases of 8 % and 13 %, respectively. Despite the strong production figures, ISMA warns that mill finances remain under pressure.
Higher sugarcane prices set by several states have widened the gap between input costs and sugar realizations, with ex‑mill sugar prices in major producing regions like Maharashtra and Karnataka falling to around ₹3,550 per quintal — below the cost of production — resulting in rising inventories and concerns over delayed payments to cane farmers. In this context, the industry body has renewed its call for a revision of the Minimum Selling Price (MSP) of sugar to better align with production costs and ensure timely payments to growers. Looking ahead, ISMA is pushing for GST rationalization across the biofuels and clean mobility ecosystem in Budget 2026‑27. The proposals include GST cuts on flex‑fuel and hybrid vehicles, higher ethanol blends (such as E85 and E100), ethanol production machinery, and ethanol‑based cookstoves.
The association is also seeking targeted support for advanced biofuels — such as sustainable aviation fuel (SAF), green bio‑hydrogen, and compressed biogas (CBG) — and is advocating for transforming sugar mills into integrated bio‑energy hubs producing ethanol, gas, hydrogen, and green power. According to ISMA, supporting biofuel production and related technologies would not only help cut emissions and reduce crude oil imports but also provide alternative demand channels for excess sugar output, aiding rural incomes and stabilizing the broader sugar sector.
