Maharashtra Urges Centre to Raise Sugar Minimum Selling Price to Rs 41 Per Kg

The Maharashtra government on Friday urged the Central government to raise the minimum selling price (MSP) of sugar from Rs 31 per kg to Rs 41 per kg to support sugar mills facing rising production costs. The state government also requested the Centre to lift current restrictions on sugar exports and increase the procurement quota for sugar-based ethanol.

Cooperation Minister Babasaheb Patil announced the demands on Friday while replying to a discussion in both Houses of the legislature. Patil explained that the state had formally conveyed these requirements to the Central government, as decisions regarding sugar pricing, exports, and ethanol procurement fall under federal jurisdiction. Chief Minister Devendra Fadnavis is scheduled to raise the issue soon with Union Cooperation Minister Amit Shah.

The state's intervention follows growing concerns from sugar mills over stagnant prices and rising operational expenses. According to the National Sugar Federation, the MSP for sugar has remained unchanged since 2019. Meanwhile, the Fair and Remunerative Price (FRP) paid to sugarcane farmers has increased from Rs 2,750 per tonne in the 2018-19 season to Rs 3,550 per tonne in the 2025-26 season.

To address these challenges, the sugar industry has also requested a subsidy of Rs 500 per tonne of sugar and a higher quota for sugar-based ethanol. Mill owners have pointed out that only 30 per cent of current ethanol procurement comes from sugar, which leaves a significant portion of the sector's installed production capacity underutilised.

The issue is highly significant for the state, as Maharashtra was the country’s largest sugar producer during the 2025-26 crushing season. The state produced 99.2 lakh metric tonnes of sugar from a total of 1,041.58 lakh metric tonnes of sugarcane during that season.