The State Advisory Price (SAP) for cane will stay the same during the ongoing 2024-25 cane crushing season in Uttar Pradesh. This decision was made by the state government through a cabinet by-circulation on Tuesday, one day before the start of the UP assembly Budget session. This decision comes as a relief for sugar millers in the state.
Earlier, in January 2024, the UP government raised the State Advisory Price (SAP) for all sugarcane varieties by Rs 20 per quintal. The SAP for early-maturing varieties was increased 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.
Sugar mill owners have recently voiced opposition to any price hike. They argue that while they make regular payments and operate their mills throughout the season, this year the recovery rate of sugar from cane is also low. Mill owners had warned that the any increase in price could affect their ability to make timely payments.
Recently, amid the expected increase in the SAP for the 2024-25 season, the UP Sugar Mills Association (UPSMA) raised concerns about a decline in sugar recovery, which would lead to higher production costs. In a letter to UP Chief Secretary Manoj Kumar Singh, the association highlighted the decline in recovery. The drop in sugar recovery compared to last year has significantly pushed up the cost of production.
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