Uttar Pradesh: The cabinet might make a decision on increasing the price of sugarcane shortly
The government of Uttar Pradesh is considering raising the price of sugarcane this year. The state’s Advisory Committee has given its approval for a potential increase, which is likely to be between Rs 10 and Rs 15 per quintal. A definitive conclusion on this matter will be reached shortly by the state cabinet, as reported by Navbharat Times
In January 2024, the Uttar Pradesh government increased the State Advisory Price (SAP) for all types of sugarcane by Rs 20 per quintal. The SAP for early maturing varieties rose from Rs 350 to Rs 370 per quintal, for common varieties from Rs 340 to Rs 360, and for late maturing varieties from Rs 335 to Rs 355 per quintal.
Farmer groups have shown frustration with the relatively modest price increases over the past few years. Although the government raised the price by Rs 20 per quintal for the 2023-24 period, farmers contend that such increments are inadequate and should be implemented each year to reflect growing production expenses.
Conversely, sugar mill operators have opposed any price increases. They claim that despite making regular payments and running their mills for the entire season, this year has seen a lower recovery rate of sugar from the cane. Mill owners caution that rising costs could hinder their ability to make prompt payments and emphasize that sustaining mill operations under these conditions will become progressively more difficult.
Recently, as the anticipated rise in the State Advised Price (SAP) for the 2024-25 season approaches, the UP Sugar Mills Association (UPSMA) has voiced worries about a decrease in sugar recovery, which will result in higher production expenses. In a letter addressed to UP Chief Secretary Manoj Kumar Singh, the association pointed out the reduction in recovery. The decline in sugar recovery compared to last year has risen notably to around 0.84%, which has considerably increased production costs.
Mill operators are also appealing to the government to raise the Minimum Support Price (MSP) for sugar. The MSP for sugar, maintained at Rs 31 per kg since February 2019, has not been adjusted. Nonetheless, industry organizations have requested a hike due to escalating production expenses and the financial strain on sugar mills.
The government of Uttar Pradesh is considering