Govt mulls hike in sugar MSP, ethanol prices

The government is considering increasing ethanol prices, raising minimum selling price (MSP) of sugar, and reviewing sugar exports for the 2024-25 season, Food Minister Pralhad Joshi said on Thursday.

“The petroleum ministry is seized of the matter. We are in touch with petroleum ministry. It is well under consideration to hike the ethanol price,” Joshi told reporters on the sidelines of an industry conference here.

Regarding sugar exports, Joshi stated, “We will take a decision after looking into next year’s production and availability of sugar.”

The minister also said a committee of secretaries is deliberating on a proposal to increase the minimum selling price of sugar, which has remained unchanged at ₹31 per kg since February 2019. Joshi was optimistic about sugar production for the 2024-25 season starting October, citing favourable monsoon conditions.

Ethanol prices, set by the government, have not been raised since the 2022-23 ethanol supply year (November-October). Current rates of ethanol produced from cane juice, B-Heavy molasses, and C-Heavy molasses are ₹65.61, ₹60.73 and ₹56.28 per litre, respectively.

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