In a move aimed at supporting sugarcane farmers and stabilizing the sugar sector, the government is reportedly considering a 27% hike in the Minimum Support Price (MSP) of sugar, raising it from the current level to ₹38 per kilogram.
According to officials familiar with the discussions, the proposal comes amid rising production costs, higher cane prices, and the need to ensure timely payments to farmers. The hike, if approved, would mark one of the largest MSP revisions in recent years for the sugar industry.
Industry experts believe the increase could help sugar mills clear pending dues to farmers while also strengthening the financial health of the sector. However, they caution that the move may lead to higher retail prices, potentially affecting consumers in the short term.
Economists also note that a significant MSP rise could influence the government’s export policies and domestic stock management strategies, especially at a time when global sugar prices have shown fluctuation due to weather-related uncertainties in major producing countries.
The final decision is expected after consultations with various stakeholders, including mill owners, farmer associations, and state governments. If implemented, the revised MSP would take effect in the upcoming crushing season.
