ENA Sectors 2025-05-22 16:44:03 <p><span style="font-size:14px"><strong>New Delhi, May 22 (KNN)</strong> The Indian sugar industry is pressing the government to increase ethanol procurement prices, aligning them with the recent hike in the Fair and Remunerative Price (FRP) for sugarcane. </span></p> <p><span style="font-size:14px">This appeal comes amidst a significant downturn in sugar production and escalating financial challenges faced by sugar mills.</span></p> <p><span style="font-size:14px">In the 2024-25 crushing season, India's sugar output plummeted by over 55 lakh metric tonnes (LMT), dropping from 315.40 LMT in the previous year to 257.40 LMT. </span></p> <p><span style="font-size:14px">Maharashtra and Karnataka experienced the steepest declines, attributed to erratic rainfall and red rot disease, which also led to a decrease in sugar recovery rates from 10.10 per cent to 9.30 per cent.Consequently, 532 out of 534 sugar mills ceased operations by mid-May. </span></p> <p><span style="font-size:14px">The National Federation of Cooperative Sugar Factories (NFCSF) has highlighted that stagnant ethanol prices have made sugar production more economically viable than ethanol production, resulting in a shortfall in the targeted ethanol diversion. </span></p> <p><span style="font-size:14px">To address this, the NFCSF is advocating for an increase in ethanol procurement rates and the establishment of a linkage between FRP and ethanol prices. </span></p> <p><span style="font-size:14px">Deepak Ballani, Director General of the Indian Sugar and Bio-energy Manufacturers Association (ISMA), emphasised that the current ex-mill sugar prices, ranging from Rs 30-36 per kg, are below the production cost of Rs 41 per kg. </span></p> <p><span style="font-size:14px">He urged for a revision of the minimum selling price (MSP) of sugar and ethanol procurement prices to ensure the financial viability of sugar mills. </span></p> <p><span style="font-size:14px">The government is reportedly considering extending the sugar export ban to prioritise domestic supply and ethanol production, aiming to achieve a 20 per cent ethanol blend in gasoline by 2025-26. An increase in ethanol procurement prices by more than 5 per cent is also under deliberation. </span></p> <p><span style="font-size:14px">Industry stakeholders assert that aligning ethanol prices with the increased FRP is crucial to sustain the sugar sector, meet biofuel targets, and ensure timely payments to farmers.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 42177 https://knnindia.co.in/news/newsdetails/sectors/indian-sugar-industry-urges-govt-for-ethanol-procurement-price-hike 2025-05-22 16:44:03 knnindia.co.in