AISTA Demands 35 Percent Increase in Minimum Selling Price of Sugar

The All India Sugar Trade Association (AISTA) has demanded a significant increase in the minimum selling price (MSP) of sugar from the government. The association has requested to raise the minimum selling price of sugar from the current ₹31 per kg to ₹42 per kg. This demand was presented by the association before a four-member committee led by former NITI Aayog member Ramesh Chand.

This committee was constituted on October 13, primarily to resolve the grievances of farmers in Karnataka and Maharashtra. The committee held meetings with sugarcane farmers in Bengaluru on November 4 and subsequently in Pune, where representatives of AISTA were also present. AISTA Chairman Praful Vithalani stated that the minimum selling price of sugar has remained unchanged since February 2019. To ensure that mills do not sell sugar at a price lower than the cost of production, this price should be increased to at least ₹4,200 per quintal.

For the 2026-27 season, the government had fixed the Fair and Remunerative Price (FRP) of sugarcane at ₹365 per quintal with a basic sugar recovery rate of 10.25 percent. Vithalani stated that all stakeholders had widely accepted this price at that time. He further added that at present, there appears to be no need for protest demonstrations on this issue. The association also noted that sugarcane prices in India are the highest in the world.

AISTA has requested the committee to study the payment method used in Gujarat. Under their suggested two-tier model, farmers would have two options: either receive the full FRP within 7 to 14 days of sugarcane delivery, or receive the FRP with a 10 percent premium if they accept payment in three installments.

The industry has also sought relief regarding loans taken for setting up ethanol distilleries. These loans were taken under the government's programme to blend 20 percent ethanol with petrol. Due to bad weather, sugar production is likely to decrease in the coming season, which will reduce ethanol production and may leave mills unable to repay the debt. AISTA has requested a two-year moratorium on the payment of principal and interest for affected projects, and that the interest subsidy be increased from 50 percent to 100 percent so that the loans do not turn into bad debts.

AISTA is the All India Sugar Trade Association, an organisation involved in the trade of sugar.