New Delhi, Mar 16 (UNI) Facing frequent policy interventions and unremunerative sugar and ethanol prices, leading sugar industry think-tank, ChiniMandi, has approached the government seeking its attention on various issues, including aligning the sugar Minimum Support Price (MSP) with sugarcane Fair and Remunerative Price (FRP).

In a white paper titled “Roadmap for Growth of Sugar, Bioenergy and Allied Industries” submitted to the Minister of Road Transport and Highways, Nitin Gadkari and Aswani Srivastava, Joint Secretary- Sugar, DFPD, ChiniMandi said “Even with successive sugarcane FRP revisions, the sugar MSP has remained unchanged since 2019. The widening gap between MSP and FRP is adversely affecting the financial health of the sugar and bioenergy industry. There is a need for an urgent upward revision in sugar MSP, which will help sugar mills generate cash flow and help them make timely sugarcane purchase price payments to farmers.”

The White Paper was developed based on the recommendations and suggestions by industry leaders at the “The Sugar - Ethanol & BioEnergy India Conference- SEIC 2025” held recently in New Delhi.

Uppal Shah, Founder and Managing Director of ChiniMandi, stated, “The sugar industry has grown significantly, but it still faces several challenges that require urgent attention. This White Paper serves as a roadmap to help the industry sustain, expand, and compete on a global scale.”

To strengthen revenue diversification, the paper suggested that the Government must encourage ethanol producers to explore additional by-products like DDGS (Distillers Dried Grains with Solubles) and extracted oil for added profitability. The industry should be allowed to promote speciality sugar production (pharma-grade, icing sugar, packaged sugar) to enhance market competitiveness.

Hemant Shah, Co-founder and Director of ChiniMandi, added, “With strategic planning, research, development, and a collective approach toward sustainability, India can set new standards in sugar and bioenergy production. This will contribute to national growth and global sustainability objectives.”

The document has asked the government to take steps to upgrade logistics and infrastructure by way of improving ethanol storage and blending infrastructure at OMC facilities to facilitate smoother ethanol integration and also develop better sugar storage solutions to prevent spoilage and maintain quality.

It also asked the government for establishing a long-term roadmap for advanced biofuels like Green Hydrogen, SAF and CBG production to support long-term energy security.

Commenting on the Paper, G K Sood, Chairman, MEIR Commodities said “The sugar industry, having spearheaded the energy transition programme and continues to play an important role in taking it forward. It has invested a lot in ethanol units.

"Hence, the industry must be able to fully utilise the capacity in the national interest and to ensure that the industry can service its investment, besides being able to make timely sugarcane price payments.

"It is imperative that the purchase price for ethanol from b heavy molasses and sugarcane juice are updated in line with the increase in costs, particularly the increase in FRP of sugarcane, not revised for the last two years. I feel the White Paper submitted by ChiniMandi has effectively articulated these imperatives and will go a long way for sustainability and growth of the industry," he said.

The White Paper is the need of the hour. The sugar industry is playing an important role in making the country energy efficient. Hence, all efforts should be made to address the concerns of the industry, ChiniMandi said.

The paper prepared by ChiniMandi is very comprehensive and covers all dynamics of the current situation.

“I appreciate the management of ChiniMandi who took this initiative and echo the correct points to policymakers. I believe that policymakers will look into these issues,” Vijendra Singh, ED, Shree Renuka Sugars, said adding the recommendations which were based on the inputs given by eminent professionals, government officers and experts are crisp and to the point.

Once these policies are implemented, all stakeholders will benefit from a sustainable ecosystem around ethanol and sugar industry, Singh added.

The ChiniMandi further stated in the paper that “the sugar industry has invested a lot in ethanol units. It is imperative that the industry is able to earn profit from the sale of ethanol to make the industry viable, and be able to make timely sugarcane price payment. The Government should give a serious hearing and revise the ethanol procurement price for heavy molasses and direct sugarcane juice.”

ChiniMandi is a digital platform that delivers news, updates, and analytical insights about the sugar, ethanol, and allied industries. UNI SKB SSP

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