ISMA called for an urgent sugar MSP hike as prices fell below production costs. It also demanded higher ethanol procurement prices, lower taxes on flex-fuel cars, and policy clarity to boost the bio-energy sector's long-term growth.
The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) gathered on Thursday for its Annual General Meeting (AGM). According to a press release from ISMA, the organisation promised to work closely with the Government of India and other partners. Their main goal is to strengthen the sugar and bioenergy business and position it for the long term.
Call for Sugar MSP Increase
A major issue discussed was sugar pricing. ISMA noted that sugar prices have declined recently. The current price is below the cost of producing sugar. As a result, the association said it is critical to raise the Minimum Selling Price (MSP) quickly. A higher price will help sugar mills remain financially stable. It will also ensure that farmers are paid on time and do not have to wait for their payments.
Gautam Goel, President, ISMA, said, "The Indian sugar & bio-energy industry is at a pivotal moment. Addressing immediate economic challenges is essential, but our larger focus is on creating a future-ready sector anchored in technology, sustainability, and diversification. ISMA remains committed to constructive engagement with the Government to unlock long-term growth opportunities for the industry and farmers."
Focus on Bio-Energy and Ethanol Sector
ISMA also highlighted that ethanol purchase prices need to increase for the 2025-26 supply year. They noted that the price has stayed the same for three years, even though costs have gone up. The association wants fair rules for everyone who makes ethanol from sugarcane, especially private companies. To help sell more ethanol, ISMA wants lower taxes on cars that run on flex-fuels. They believe these cars are the best way to use the ethanol made in the country. They also looked at mixing diesel with Iso-Butanol as a new chance for growth.
Niraj Shirgaokar, Vice President, ISMA, said, "Ethanol has emerged as a cornerstone of India's energy transition. Timely revision of ethanol procurement prices and policy clarity beyond E20 will be critical to sustaining investments and ensuring continued momentum in the biofuels ecosystem and realisation of the country's Net Zero goals."
Sugar Production Estimates for 2025-26
ISMA's first advance estimate for the 2025-26 sugar season, released in November 2025, projected gross sugar production at 343.5 lakh tonnes, based on pan-India satellite imagery from late October 2025 and field assessments. Later, they looked at new pictures from Maharashtra and Karnataka taken in late November and early December. These showed that production is 28 per cent higher than last year because of better crops. Based on this, ISMA kept their estimate at 343.5 lakh tonnes for the 2025-26 season.
Future Outlook and Vision
Deepak Ballani, Director General, ISMA, said, "The coming year will focus on building new capabilities--advanced cane development, digitalised mills, and diversification into bio-based products. This is central to Atmanirbhar and Viksit Bharat, strengthening self-reliance, sustainability, and farmer prosperity. Through focused knowledge-sharing, policy advocacy, and capacity building, ISMA is working to position India's bio-energy sector as a scalable development model for the Global South to follow."
The meeting welcomed key government guests, including Pralhad Joshi, the Union Minister of Consumer Affairs, Food & Public Distribution, and New & Renewable Energy, and Sanjeev Chopra, Secretary of the Department of Food & Public Distribution. (ANI)
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