‘Progressive and farmer pleasant’: ISMA welcomes Centre’s ₹10 hike in sugarcane FRP

The Indian Sugar & Bio-energy Producers Affiliation (ISMA) has welcomed the Centre’s choice to lift the Honest and Remunerative Worth (FRP) of sugarcane by ₹10 per quintal to ₹365 for the 2026–27 sugar season, calling it a robust enhance for farmers and the agricultural economic system.

FRP raised to ₹365 per quintal

In a press release, ISMA mentioned, “ISMA warmly welcomes the Authorities’s choice to extend the Honest and Remunerative Worth (FRP) of sugarcane by ₹10 per quintal for the 2026–27 sugar season to ₹365 per quintal. This progressive and farmer-friendly step displays the Authorities’s continued dedication to strengthening farmer welfare and enhancing rural prosperity.”

5.5 crore farmers to achieve

The revised FRP is predicted to learn almost 5.5 crore sugarcane farmers throughout the nation. In response to ISMA, the hike might generate an extra earnings of over ₹15,000–20,000 crore, taking whole cane funds to round ₹1.3 lakh crore within the upcoming season.

“This can present a robust impetus to rural demand and reinforce the agricultural economic system, notably in areas the place sugarcane cultivation is a major livelihood,” the assertion mentioned.

Trade backs govt’s ‘proactive strategy’

Praising the transfer, ISMA mentioned, “ISMA commends the Authorities for its proactive strategy and responsiveness to the wants of the farming group.”

Name to align sugar MSP, ethanol costs

On the identical time, the business physique flagged issues over rising price pressures on mills and burdened the necessity for coverage alignment. It mentioned, “On the identical time, ISMA respectfully highlights the significance of aligning the Minimal Promoting Worth (MSP) of sugar and ethanol procurement costs with the revised FRP of sugarcane. Such alignment is crucial to make sure monetary sustainability throughout the whole worth chain—from farmers to sugar mills.”

Greater FRP raises enter prices for mills

ISMA famous that whereas the FRP hike helps farmers, it additionally will increase uncooked materials prices for mills. “A proportionate revision in sugar MSP and ethanol procurement costs would allow mills to soak up these larger prices with out monetary pressure, thereby sustaining operational stability and guaranteeing well timed cane funds to farmers,” it mentioned.

Ethanol mismatch provides to emphasize

The affiliation additionally pointed to decrease ethanol allocation, which has led to a mismatch between put in distillation capability and home offtake, leading to underutilisation and monetary stress.

“A well timed revision in sugar and ethanol pricing, together with equitable ethanol allocation, is crucial to revive feedstock steadiness, enhance capability utilisation, and supply long-term coverage certainty to traders and stakeholders,” it added.

Push for larger ethanol mixing targets

Highlighting the broader vitality context, ISMA mentioned rising crude oil costs and world uncertainties make ethanol mixing extra essential. With an estimated manufacturing capability of almost 2,000 crore litres (together with grain-based ethanol), it known as for a roadmap past E20 to larger blends reminiscent of E22, E25, E27, and E85/E100.

The affiliation additionally urged sooner rollout of flex-fuel automobiles and GST rationalisation to spice up demand.

Balanced strategy wanted

“Such coverage alignment would strengthen the monetary well being of sugar mills, enhance liquidity, and be sure that farmers obtain their dues in a well timed and environment friendly method,” ISMA mentioned.

It added that the federal government is predicted to take a balanced strategy to assist each farmers and the sugar business in a sustainable method.