The Uttar Pradesh government might increase sugarcane price this year. The state’s Advisory Committee has approved the price hike, which could range from Rs 10 to Rs 15 per quintal. A final decision on this will be made soon by the state cabinet, reported Navbharat Times.
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 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.
Farmer organizations have expressed dissatisfaction with the moderate price hikes in recent years. While the government increased the price by Rs 20 per quintal in 2023-24, farmers argue that such increases are insufficient and should be made annually to account for rising production costs.
On the other hand, sugar mill owners have voiced opposition to any price hikes. 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 warn that increased costs could affect their ability to make timely payments and stress that maintaining mill operations under these circumstances will be increasingly challenging.
Recently, amid the expected increase in the SAP for the 2024-25 season, the UP Sugar Mills Association (UPSMA) has 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 a decline in recovery. The drop in sugar recovery as compared to last year has increased substantially to now approx. 0.84% which has significantly pushed up the cost of production.
Millers are also urging the government to increase the MSP of sugar. The current MSP of sugar, set at Rs 31 per kg in February 2019, has remained unchanged. However, industry groups have called for an increase due to rising production costs and financial pressures on sugar mills.
Also Read: UPSMA expresses concern over drop in sugar recovery amid expected increase in sugarcane SAP
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