No increase in SAP of sugarcane in UP

The Uttar Pradesh government has decided against revising the State Advisory Price (SAP) for the sugarcane, procured from farmers in the ongoing cane crushing season.

According to a notification issued by the cane development department, the SAP for the general variety of cane will remain unchanged at Rs 340 per quintal while the procurement price for early and late maturing variety has been fixed at Rs 350 and Rs 335 per quintal, respectively.

The state government had last revised the SAP in September 2021, months ahead of the 2022 UP Assembly elections.

The notification to keep SAP unchanged was issued at a time when the state government is celebrating completion of 120 years of cane industry in UP.

Officials said the decision was driven by the fact that the state government was more in favour of “efficient” and timely” payment of cane dues to farmers.

Industry sources said that over 72 per cent of the payment for cane purchased from farmers has been made in the current crushing season which is expected to last another three months.

Chief Minister Yogi Adityanath has been stressing on timely payment of cane dues to farmers.

A senior office-bearer in the UP Sugar Mills Association (UPSMA) said that any increase in SAP at this point of time would have mounted arrears in the mills which are already burdened with the pressure of less revenue recovery in the wake of low cost of sugar in the open market.

Millers said that as against a demand of around Rs 36 per kg, the sugar was being sold at Rs 33 per kg.

The government is likely to take a call on revising SAP in the next crushing season — ahead of the next year’s Lok Sabha elections.

The SAP for sugarcane in Uttar Pradesh is reportedly the third highest in the country after Haryana and Punjab. Significantly, both Punjab and Haryana have increased the cane compensation by Rs 20 and Rs 10 per quintal, respectively, in the ongoing crushing season.

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