ISMA outlines a future-ready roadmap for India’s Sugar & Bio-Energy Sector at its Annual General Meeting

New Delhi, 18 December 2025: The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) held its Annual General Meeting (AGM) today, reaffirming its commitment to work closely with the Government of India and all stakeholders to strengthen the long-term sustainability, competitiveness, and growth of India’s sugar and bio-energy sector.

The AGM was graced by Shri Pralhad Joshi, Hon’ble Minister of Consumer Affairs, Food & Public Distribution and New & Renewable Energy, Government of India and Shri Sanjeev Chopra Ji, Secretary, Department of Food & Public Distribution. 

Addressing members and stakeholders, ISMA highlighted the need for proactive and continuous engagement with policymakers to address current market challenges while simultaneously preparing the industry for future opportunities driven by energy transition, sustainability, and technological advancement.

Key focus areas for the coming year 

Ensuring economic viability of the sugar sector

ISMA will emphasise the recent softening of sugar prices, which are currently below the cost of production and require urgent attention. The Association reiterated the importance of a timely upward revision of the Minimum Selling Price (MSP) to safeguard the financial health of sugar mills, timely payment to farmers, and stopping cane arrears.

Strengthening the ethanol ecosystem

ISMA will highlight the importance of an upward revision of ethanol procurement prices for the 2025-26 Ethanol Supply Year, noting that prices have remained unchanged for three years despite rising costs. The Association also reiterated its commitment to ensuring a level playing field for sugarcane-based ethanol producers, particularly from the private sector, to sustain investments and capacity creation.

Driving ethanol demand through flex-fuel vehicles

To ensure sustained ethanol demand, ISMA will continue to advocate for reduced GST and fiscal incentives for Flex-Fuel and Strong Hybrid Vehicles (FFVs/HEVs). Wider adoption of FFVs is seen as the most scalable solution to fully utilise the ethanol production capacities already created in the country.

Roadmap beyond E20

ISMA will call for a clear and phased roadmap for ethanol blending beyond E20, providing long-term visibility to investors. The Association also highlighted the potential of diesel blending with Iso-Butanol as a promising opportunity to expand the biofuels ecosystem.

ISMA’s latest sugar production estimates

ISMA’s first advance estimate for the 2025–26 sugar season, released in November 2025, projected gross sugar production at 343.5 lakh tonnes, based on pan-India satellite imagery from late October 2025 and field assessments. To further refine estimates, ISMA analysed special satellite imagery of Maharashtra and Karnataka captured in late November and early December 2025, alongside crushing trends and field reports indicating 28% higher year-on-year production as of mid-December’2025, supported by better cane yields and improved recovery rates in key states. In light of these trends, ISMA has reaffirmed its gross production estimate of 343.5 lakh tonnes for the 2025–26 season.

Gautam Goel, President, ISMA:

“The Indian sugar & bio-energy industry is at a pivotal moment. Addressing immediate economic challenges is essential, but our larger focus is on creating a future-ready sector anchored in technology, sustainability, and diversification. ISMA remains committed to constructive engagement with the Government to unlock long-term growth opportunities for the industry and farmers.”

Niraj Shirgaokar, Vice President, ISMA:

“Ethanol has emerged as a cornerstone of India’s energy transition. Timely revision of ethanol procurement prices and policy clarity beyond E20 will be critical to sustaining investments and ensuring continued momentum in the biofuels ecosystem and realisation of the country’s Net Zero goals.”

Deepak Ballani, Director General, ISMA:

The coming year will focus on building new capabilities—advanced cane development, digitalised mills, and diversification into bio-based products. This is central to Atmanirbhar and Viksit Bharat, strengthening self-reliance, sustainability, and farmer prosperity. Through focused knowledge-sharing, policy advocacy, and capacity building, ISMA is working to position India’s bio-energy sector as a scalable development model for the Global South to follow.”

About ISMA:

The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) is the apex industry body representing private and public sector sugar and bio-energy producers in India. Established in 1932, ISMA plays a vital role in policy advocacy, sustainability initiatives, and advancing India’s energy transition goals through sugar and ethanol production.