UP Govt likely to not change sugarcane SAP this year: Media report

Lucknow: With an increase in the Fair and Remunerative Price (FRP) for sugarcane now in effect for the ongoing cane-crushing season, attention is on whether the Uttar Pradesh government will adjust the State Advisory Price (SAP) for the crop in the state, reported Times of India.

In February, the Cabinet Committee on Economic Affairs raised the FRP by 8% for the 2024-25 season, setting it primarily based on a sugar recovery rate of 10.25%. This updated rate took effect on October 1.

According to top sources, the state government is expected to hold a high-level meeting soon to make a decision that could impact nearly 4.5 million cane growers across Uttar Pradesh. A senior official noted that the government is handling the SAP issue carefully and is aware of political sensitivities, especially in western UP, where sugarcane is a vital crop. Speculation is growing that the government may keep the SAP unchanged this year, possibly to ease financial pressure on mills that have fallen behind on payments to farmers.

The Rashtriya Lok Dal (RLD), a key ally of the BJP, has been calling for the SAP to be set at Rs 400 per quintal. Party spokesperson Rohit Agarwal emphasised, “This is a primary demand from the party. We are also working with the mills to settle outstanding payments owed to farmers.”

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