Sugar industry seeks 35% price hike as farmer unrest panel convenes

The All India Sugar Trade Association (AISTA) has pressed the government to raise the minimum selling price (MSP) of sugar to ₹42 per kilogramme from the current ₹31, marking a 35 per cent increase that has remained static since February 2019. The demand was placed before a four-member committee established on October 13 to address mounting discontent among sugarcane growers, particularly in Karnataka and Maharashtra where farmer protests have intensified.

AISTA Chairman Praful Vithalani told the panel, headed by former Niti Aayog member Ramesh Chand, that raising the MSP to ₹4,200 per quintal was essential to prevent mills from selling sugar below their production costs. The committee, which held meetings with sugarcane farmers in Bengaluru and Pune on November 4, is tasked with resolving a deepening crisis in the agricultural sector that has threatened to destabilise relations between mills and growers.

While backing the government's Fair and Remunerative Price (FRP) for sugarcane at ₹365 per quintal for the 2026-27 season as "fair and just," AISTA's intervention signals growing concern within the industry over profitability margins. The dual pressure from farmer demands for higher cane prices and mill concerns about sugar pricing underscores the delicate balance authorities must strike to sustain the sector's viability across both production and processing.