The increase in the sugar production cost in Uttar Pradesh is likely to affect the sugar export from the state in the forthcoming cane crushing season.
News agency IANS reported that sugar output in the state is likely to remain around 100 MT and with the consumption remaining at 40 MT, the state is likely to face a glut-like situation leading the mills to store sugar stocks in their warehouses if the state fails to push the sale of the sweetener in the national market.
Sugarcane crushing is likely to start next month in the state. The State Advisory Price (SAP) for sugarcane has been raised from Rs 315 to Rs 340 per quintal in September last year by the UP government which has raised the cost of sugar production from around Rs 31 to Rs 35 per kg, according to the officials.
The situation was suitable last year when sugar exports were at their peak, said a senior official from the Indian Sugar Mills Association (ISMA).
We are waiting for the government to announce the sugar export policy, he said.
