Govt Actively Working On Sugar Industry's Demands, Says DFPD Secretary

(MENAFN- AsiaNet News)

Government Addresses Sugar Industry's Concerns

The government is actively working on some of the recommendations made by the Indian sugar industry stakeholders, to primarily prevent excess sugar stock buildup and at the same time ensure timely payments to sugarcane farmers, Secretary, Department of Food and Public Distribution (DFPD), Sanjeev Chopra said, addressing the Annual General Meeting of the Indian Sugar and Bio-energy Manufacturers Association (ISMA).

ISMA's demands, among others, include an upward revision of the minimum selling price (MSP) of sugar and higher ethanol procurement prices. Secretary Chopra said the industry's concerns are on the government's priority list and are being actively examined. "We have made certain headway in the various issues that have been pointed out (by the ISMA). I can only assure that these issues are very much on our priority list. We are actively considering all of them and hopefully in the interest of all stakeholders we'll come up with ideas, with solutions and with some kind of an outcome which would ensure that all the stakeholders of the sugar industry are given their due," he said at the AGM.

Sugarcane Production Outlook

Chopra noted that sugarcane production prospects remain positive, with the area under sugarcane rising from 54.5 lakh hectares in 2024-25 to 56.93 lakh hectares in 2025-26. Estimated sugarcane production is projected to increase by around 5 per cent to 47.56 lakh tonnes in 2025-26 from 45.46 lakh tonnes in the previous season.

He said the government's sugar production estimate for the ongoing season stands at 343 lakh tonnes, in line with ISMA's projections, calling the convergence of estimates a positive development for policymaking. "In the past, there have been certain divergence which has made policy making a little more challenging. So I'm happy that the numbers are converging," Chopra noted.

Surplus Management and Exports

On sugar stock surplus management, Chopra said the ethanol blending programme, backed by the National Bio-Energy Policy of 2018, has provided an additional revenue stream to the sugar industry. However, he acknowledged the challenges. Only 28 per cent of ethanol feedstock allocation has come from sugarcane-based sources, with the remaining 72 per cent from grains this year. This is expected to result in the diversion of about 34 lakh tonnes of sugar for ethanol production, lower than popular expectations.

To support the industry, the government has already allowed the export of 15 lakh tonnes of sugar. Chopra said export parity remains a concern but expressed optimism that conditions would improve after the Brazilian sugar season ends in the coming days. "We are hoping that this 15 lakh tons of sugar export, which is already allowed, the parity would soon be available and the sugar industry would be able to dispose these stocks profitably," the Secretary said.

The Secretary in his address, reiterated that some decisions are in the works. "We are working towards that and you would come to know in due course about the various decisions that the government would take to ensure that there is no buildup of stocks and the industry has the liquidity to make timely payments to the farmers," he told the ISMA AGM gathering.

New Regulatory Framework Planned

To bring greater transparency and efficiency to regulation, Chopra announced that the government has drafted a new Sugar Control Order, 2025, replacing the decades-old 1996 order. The new framework aims to make regulation more technology-driven, integrating digital systems between DFPD and sugar mills for real-time data sharing and monitoring.

"You will hear about that very shortly. We'll put it up for public consultations. And then maybe we can factor in your views before we finalize that," he supplemented. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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