India Forms Committee to Review Sugar Prices and Farmer Payments

The Government of India established a high-level committee on October 14 to review the minimum selling price (MSP) of sugar and the returns provided to sugarcane farmers. Led by Professor Ramesh Chand, a former NITI Aayog member, the panel follows a series of meetings in New Delhi between Union Ministers and a delegation of 80-90 farmers from Maharashtra and Karnataka.

Farmers are demanding an increase in the sugar MSP from Rs 31 per kg—a rate unchanged since February 2019—to between Rs 50 and Rs 60 per kg. While the government fixed the Fair and Remunerative Price (FRP) at Rs 365 per quintal for the 2026-27 season, groups like the Karnataka Sugarcane Growers Association argue this is insufficient. Beyond pricing, the committee is tasked with investigating irregularities in sugar mill operations, specifically regarding weighing practices, recovery testing, and deductions for mechanically harvested cane.

The panel includes officials from the Ministry of Agriculture and Farmers' Welfare and the Department of Food and Public Distribution. It will consult with state governments, mill associations, and farmers to balance remunerative returns with the financial viability of sugar mills. Some farmer representatives, including Bhuvanesh Sidhapur, have criticized the committee approach as too slow, arguing that an immediate price increase is necessary rather than a long-drawn administrative process.