ChiniMandi, a digital platform that provides updates and insights on sugar, ethanol, and related industries, has reached out to the government regarding various issues faced by the sector. One key issue highlighted in a white paper titled “Roadmap for growth of sugar, bioenergy and allied industries” is the need to align the sugar minimum support price (MSP) with the sugarcane fair and remunerative price (FRP).
According to the white paper, the sugar MSP has not been revised since 2019, despite multiple increases in the sugarcane FRP. This disparity between MSP and FRP is straining the financial health of the sugar and bioenergy industry. The paper calls for an urgent upward revision in the MSP of sugar to help sugar mills generate cash flow and ensure timely payments to sugarcane farmers.
The recommendations in the white paper were based on inputs from industry leaders at ‘The Sugar – Ethanol and BioEnergy India Conference – SEIC 2025’ in New Delhi. The paper also suggests that ethanol producers should explore additional by-products like DDGS and extracted oil to enhance profitability and revenue diversification.
To address challenges faced by the industry, the white paper proposes upgrading logistics and infrastructure, promoting speciality sugar production, and revising ethanol procurement prices for b-heavy molasses and direct sugarcane juice. The paper also emphasizes the importance of developing better storage solutions for sugar to prevent spoilage and maintain quality.
Uppal Shah, Founder and Managing Director of ChiniMandi, highlighted the industry’s growth and challenges, emphasizing the need for urgent attention to sustain and expand the sector. Hemant Shah, Co-Founder and Director of ChiniMandi, emphasized the importance of strategic planning, research, and development to elevate India’s sugar and bioenergy production standards for national growth and global sustainability objectives.
