Sugar Prices Set to Rise in India as Government Increases MSP and Ethanol Rates

*New Delhi, September 27, 2024* — Sugar prices in India are expected to increase as the central government has decided to raise the minimum selling price (MSP) of sugar and ethanol for the upcoming 2024-25 season, which runs from October to September. The decision is part of the government’s broader strategy to support sugarcane farmers and balance the financial viability of the sugar industry.Union Food Minister Prahlad Joshi confirmed the move on Thursday, stating, “We have considered the proposal to increase the minimum selling price of sugar, and we will also raise the price of ethanol. The petroleum department will look into this matter further.”The increase in MSP is expected to impact sugar prices across the country, leading to a potential rise in costs for consumers. However, the government has justified the hike as a necessary step to support the sugarcane industry, which plays a crucial role in the rural economy.In addition to sugar, the price of ethanol—used in fuel blending with petrol—is also set to increase, further reflecting the government’s commitment to promoting ethanol production as part of its energy diversification efforts.As sugar is a staple in many households and industries, the price hike may lead to a ripple effect on food products and beverages that use sugar as a key ingredient. The government is expected to announce further details on the exact rates and implementation timeline in the coming days.

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