Amid ongoing challenges and to capitalize on the momentum generated by the new Sugar (Control) Order, the National Federation of Cooperative Sugar Factories (NFCSF) has urged the government to implement several key policy measures.
Among its key recommendations, the NFCSF has called for a revision of the Minimum Selling Price (MSP) of sugar to help mills manage rising production costs, which are now estimated at Rs. 40 per kg. The federation also stressed the importance of announcing the 50 LMT sugar diversion target for ethanol for the 2025–26 season at the earliest. It will help to support the planning and investment in ethanol production.
Additionally, the NFCSF advocated for revising ethanol procurement prices, particularly for ethanol derived from sugarcane juice and B-heavy molasses, to ensure the economic viability of ethanol production. The federation also pushed for the continuation of a progressive sugar export policy, noting that it would support price stability while benefiting port-based sugar-producing states such as Maharashtra, Karnataka, Gujarat, and Tamil Nadu.
The NFCSF also released updated sugar production figures as of May 15.
According to the data, the 2024–25 sugarcane crushing season is drawing to a close, with only four sugar mills still operational as of May 15. Total sugar production has declined by nearly 18%, falling from 315.40 LMT in 2023–24 to 257.40 LMT in the current season, a drop of 58 LMT. This decrease is largely attributed to lower sugarcane availability and a decline in average sugar recovery rates, which have dropped from 10.10% last season to 9.30% this year. Correspondingly, total cane crushed has also fallen, down to 2767.75 LMT from 3122.61 LMT—a reduction of 354.86 LMT.
