Karnataka Chief Minister Siddaramaiah said the Centre’s decision to consider revising the minimum selling price (MSP) of sugar followed his recent meeting with Prime Minister Narendra Modi, during which he had specifically pressed for an increase. His remarks came a day after Union Food and Consumer Affairs Minister Pralhad Joshi announced that the government would examine the industry’s long-pending demand to raise the MSP while also allowing the export of 15 lakh tonnes of sugar for the 2025–26 marketing year.
The MSP of sugar has remained unchanged at ₹31 per kg since February 2019. With production costs rising, the Indian Sugar Mills Association (ISMA) has repeatedly urged the Centre to revise the price to ₹40 per kg. Siddaramaiah said he had requested an increase to ₹41 per kg, adding, “After I requested the Prime Minister, they have done this.” He said MSP revision was among several issues he raised during his meeting with Modi earlier this week.
Deputy Chief Minister DK Shivakumar echoed this demand, saying sugar factories had approached him and the Chief Minister seeking an upward revision since prices had remained stagnant for seven to eight years. He stressed that both farmers and factories must benefit, and pointed out that many costs impacting the industry—such as sugarcane prices, molasses rates, power tariffs, and bank interest—are determined by the Centre. Karnataka, he said, had formally conveyed the need for a fair revision.
Shivakumar added that he was pleased that Pralhad Joshi had acknowledged the state’s concerns.
The developments come even as Karnataka has seen sustained protests from sugarcane farmers who have flagged the mismatch between cane prices and mills’ ability to pay the fair and remunerative price (FRP). Siddaramaiah said he also asked the Centre to ensure committed ethanol offtake for the state’s distilleries and issue a central notification covering harvesting and transport (H&T) charges to help enable transparent and predictable pricing.
Following extensive consultations with farmers and mill owners, the Karnataka government recently issued an order granting farmers an additional ₹100 per tonne—shared between the state and private mills. This ensures farmers receive a net cane price between ₹3,200 and ₹3,300 per tonne, depending on sugar recovery levels.
