Pralhad Joshi Clarifies MSP and FRP, Promises Higher Cane Price Again This Year

Union Food and Consumer Affairs Minister Pralhad Joshi has clarified the difference between MSP and FRP amid growing concerns among sugarcane farmers in Karnataka. His statement came after a large protest by sugarcane growers in Hubballi, where farmers raised several demands, including an increase in the minimum selling price of sugar.

Joshi said there is no direct connection between the MSP applicable to sugar and the FRP fixed for sugarcane. He pointed out that MSP in the case of sugar refers to Minimum Selling Price and not Minimum Support Price. According to him, the minimum selling price applies to sugar produced by mills, while FRP or Fair and Remunerative Price applies to sugarcane supplied by farmers.

The minister said sugar mills are not permitted to sell sugar below the prescribed minimum selling price. The Centre introduced the minimum selling price for sugar in 2018, and the current level is Rs 31 per kilogram. Joshi said market prices have generally remained higher, with sugar currently selling at around Rs 40 to Rs 47 per kilogram. He added that prices were around Rs 38 to Rs 39 per kilogram last year.

A key issue for sugarcane growers is the price paid for their crop. Joshi said the central government intends to increase the FRP again this year, continuing the practice of revising the price in the interest of farmers. He said the FRP had been raised to Rs 365 in May 2026 and another increase would be considered this year.

The minister also recalled that farmer representatives had met him in February 2026 and requested an increase in the FRP. He said the government would consider recommendations from the price fixing committee, the sugarcane commissioner and the state government before taking a decision.

The Centre is also expecting to hold a detailed meeting with sugarcane farmer representatives on October 12. Joshi said the discussion would focus on the problems faced by growers and possible measures to address them.

He appealed to farmer leaders to come to Delhi and discuss their concerns directly with the concerned ministries and officials instead of continuing protests in difficult weather conditions. He said the Centre was prepared to examine the issues and work towards possible solutions.

Another issue highlighted by the minister was pending payments to sugarcane farmers. Joshi claimed that after the Narendra Modi led government came to power, steps were taken to clear Rs 16600 crore in outstanding sugarcane payments.

He also referred to changes made in the payment system, including arrangements that allow sugar mills to make payments directly to farmers. According to Joshi, several measures were introduced to reduce delays that had affected growers in the past.

Ethanol production has also become an important part of the governments strategy for supporting the sugar industry. Joshi said the Centre has encouraged sugar mills to produce ethanol and increased ethanol procurement from around 38 crore litres to 1200 crore litres.

He said the higher procurement has helped improve the financial position of sugar mills and reduce the time taken to make payments to farmers. Joshi stated that sugarcane related payments were fully completed last year and that around 97 percent of payments had already been made this year.

The Centre gives preference to ethanol produced by sugar mills before purchasing ethanol from other sources, according to Joshi. He said this approach provides an additional source of revenue for mills while supporting payments to sugarcane growers.

Joshi also brought the role of state governments into the discussion. He said states have the legal option to introduce a State Advised Price, or SAP, in addition to the FRP announced by the Centre. He pointed to Uttar Pradesh, Punjab, Haryana and Uttarakhand as states that have implemented SAP arrangements.

He suggested that Karnataka should also consider introducing an SAP so farmers can receive an additional price for their sugarcane. Joshi questioned why Karnataka had not adopted a similar system and said the state government could examine the option.

At the same time, Joshi criticised the Karnataka governments decision to increase water charges for sugar factories. He claimed that the charge had risen from Rs 5 lakh to Rs 1 crore, creating an additional financial burden for sugar mills.

The minister said the Centre was ready to participate in broader discussions involving the Agriculture Ministry, Petroleum Ministry, farmer representatives and the Karnataka government. The objective, he said, would be to examine the concerns of sugarcane growers and the industry and find practical measures to address them.

The upcoming meeting with farmer representatives is therefore expected to be important for discussions on FRP, pending payments, ethanol procurement and other concerns affecting the sugarcane sector in Karnataka.