Facing frequent policy interventions and unremunerative sugar and ethanol prices, ChiniMandi (a digital platform that delivers updates and analytical insights about sugar, ethanol and allied industries) has approached the government seeking its attention on various issues, including aligning the sugar minimum support price (MSP) with sugarcane fair and remunerative price (FRP).
In a white paper titled “Roadmap for growth of sugar, bioenergy and allied industries” submitted to Nitin Gadkari, Union Minister for Road Transport and Highways, and Aswani Srivastava, Joint Secretary – Sugar, Department of Food and Public Distribution, ChiniMandi said the sugar MSP has remained unchanged since 2019 even with successive sugarcane FRP revisions. The widening gap between MSP and FRP is adversely affecting the financial health of the sugar and bioenergy industry. “There is a need for an urgent upward revision in MSP of sugar , which will help sugar mills generate cash flow and help them make timely sugarcane purchase price payments to farmers,” it said.
The white paper was prepared based on the recommendations and suggestions by industry leaders at the ‘The Sugar – Ethanol and BioEnergy India Conference – SEIC 2025’ held recently in New Delhi.
Explore DDGS
To strengthen revenue diversification, the paper suggested that the government should encourage ethanol producers to explore additional by-products like DDGS (distillers dried grains with solubles) and extracted oil for added profitability.
The paper said the sugar industry has invested in a lot in ethanol units. It is imperative that the industry is able to earn profit from the sale of ethanol to make the industry viable, and be able to make timely sugarcane price payment. The government should give a serious hearing and revise the ethanol procurement price for b-heavy molasses and direct sugarcane juice.
The document asked the government to take steps to upgrade logistics and infrastructure by improving ethanol storage and blending infrastructure at facilities of oil marketing companies to facilitate smoother ethanol integration and also develop better sugar storage solutions to prevent spoilage and maintain quality.
Facing many challenges
It said the industry should be allowed to promote speciality sugar production (pharma-grade, icing sugar, packaged sugar) to enhance market competitiveness.
Quoting Uppal Shah, Founder and Managing Director of ChiniMandi, a media statement said the sugar industry has grown significantly, but it still faces several challenges that require urgent attention. This white paper serves as a roadmap to help the industry sustain, expand and compete on a global scale.
Hemant Shah, Co-Founder and Director of ChiniMandi, said: “With strategic planning, research, development, and a collective approach toward sustainability, India can set new standards in sugar and bioenergy production. This will contribute to national growth and global sustainability objectives.”
