India will soon address the sugar industry's call for a hike in the minimum selling price and set ethanol policies before the next season. Current restrictions aim to control domestic prices by limiting sugar use in ethanol production and prohibiting exports.

Food Secretary Sanjeev Chopra

India, the world's largest sugar consumer, is set to make key decisions regarding sugar and ethanol policies in the coming days. Food Secretary Sanjeev Chopra announced that the government is discussing the sugar industry's request for an increase in the minimum selling price of sugar.

"We are discussing the minimum selling price. In the coming days, we will hopefully take a call," Chopra told reporters at a conference.

The sugar-processing industry has been advocating for a higher minimum selling price, pointing out that while the government has raised the mandatory procurement price of sugarcane in recent years, the minimum selling price has remained unchanged since 2019. Industry bodies argue that a higher minimum selling price would enable timely payments to millions of sugarcane farmers in the upcoming season starting on October 1.

During the 2023/24 marketing year, which ends on September 30, India restricted the use of sugar in ethanol production and prohibited sugar exports to keep domestic prices stable. Ethanol production is significant for the feed industry, as it generates by-products such as dried distillers grains with solubles (DDGS), which are used as high-protein animal feed. The forthcoming decisions are expected to significantly impact both the sugar and ethanol markets.