AISTA Demands 35% Hike in Sugar Prices, Seeks Minimum Selling Price of ₹42 per Kg

The All India Sugar Trade Association (AISTA) has urged the Central Government to increase the minimum selling price (MSP) of sugar from the existing ₹31 to ₹42 per kg, representing a hike of around 35 per cent. The association has also supported the government's decision on sugarcane prices, describing the current rate as reasonable and fair.
 

AISTA presented its demands before a four-member government committee headed by former NITI Aayog member Ramesh Chand. The committee was constituted on October 13 to examine the grievances of sugarcane farmers, particularly those protesting in Karnataka and Maharashtra.
 

The committee has already held discussions with sugarcane growers in Bengaluru and Pune. During its November 4 meeting in Pune, an AISTA delegation also presented its views on issues affecting the sugar industry and farmers.
 

AISTA Chairman Praful Vithalani said the minimum selling price of sugar had not been revised since February 2019. He argued that the current rate was insufficient to protect sugar mills from selling the commodity below their production costs.
 

According to Vithalani, the minimum selling price should be increased to at least ₹4,200 per quintal to ensure that mills can cover their expenses and maintain financial stability.
 

The association also backed the government's decision to fix the Fair and Remunerative Price (FRP) of sugarcane at ₹365 per quintal for the 2026-27 sugar season, which runs from October to September. The rate was announced on May 5 and is linked to a basic sugar recovery rate of 10.25 per cent.
 

Vithalani said the price had received broad acceptance from all stakeholders when it was announced. In a statement, he said the association did not see any reason for protests over the issue at present.
 

AISTA further pointed out that sugarcane prices in India are among the highest in the world. It has asked the committee to examine the payment mechanism followed in Gujarat, which the association believes could offer an alternative approach to addressing farmers' concerns.
 

Under the proposed two-option payment model, farmers would be allowed to choose between receiving the full FRP within seven to 14 days of supplying their sugarcane or accepting payment in three instalments. Under the second option, farmers would receive a 10 per cent premium over the FRP.
 

The association believes that reviewing the Gujarat model could help improve the payment system while balancing the interests of sugarcane growers and sugar mills.