Uttar Pradesh : Will SAP for sugarcane remain unchanged this crushing season?
Uncertainty surrounds the revision of Uttar Pradesh’s cane State Advisory Price (SAP) as the state cabinet defers its decision. The government is cautious, balancing farmer demands and industry concerns over rising production costs due to lower sugar recovery. Political pressure mounts, especially from BJP MLAs and RLD, urging an increase. A high-level meeting is expected soon.
Lucknow: Signs of uncertainty loomed large over revision of cane State Advisory Price (SAP) in the ongoing crushing season, a day after the state cabinet deferred its decision on the issue.The issue, sources said, came up before the cabinet on Wednesday only to be put off for being taken up “in future” after further discussion.Sources said that the state govt sought to tread cautiously on SAP revision which had the potential economic bearing on the farmers as well as the sugar industry.
Cane price happens to be at the core of political positioning by various parties, especially in the west UP region.Sources said that the state govt was not in favour of increasing the SAP in an apparent bid to ward off potential chances of compensation arrears getting piled up in the ongoing season. The sugar millers have also approached the state govt citing a drop in sugar recovery eventually pushing the cost of production further up.
The UP Sugar Mills Association (UPSMA) has also stressed that the prices of sugar did not increase in the ongoing fiscal despite the increase in SAP in 2024.The development, interestingly, comes amid indications that the Centre may revise the Fair and Remunerative Price (FRP) for the cane for 2025-26.Sources said that this year the FRP was expected to rise by another Rs 15 to Rs 355 per quintal. Last year, the Centre increased the FRP by 8% to Rs 340 per quintal.A senior BJP leader told TOI that a host of BJP MLAs from west UP, too, have been mounting pressure on the state govt to revise the SAP.BJP ally Rashtriya Lok Dal (RLD) too has been pitching for an increased compensation for the farmers. RLD spokesperson Rohit Agarwal said that the party has been consistent with its demand for a compensation mounting to Rs 400 per quintal.
Sources said that the state govt is expected to call a high-level meeting soon to decide on the issue, which impacts the interests of around 45 lakh cane growers in UP.Significantly, it was only in Jan 2024 — just before the high-stakes Lok Sabha elections—when the state govt raised the SAP by Rs 20 per quintal. As a result, SAP for early maturing varieties increased from Rs 350 to Rs 370 per quintal. For common varieties, it increased from Rs 340 to Rs 360, while for late maturing varieties, SAP rose from Rs 335 to Rs 355 per quintal.In 2023 the state govt kept the SAP unchanged, allowing the industries to cover up their pending arrears due towards the cane farmers.UP happens to be the largest producer of sugarcane in India, accounting for around 40% of the total production. In fact, the state has the largest area under cane cultivation, covering almost 50% of the country’s cane area. Check out the latest news about Delhi Elections 2025, including key constituencies such as New Delhi, Kalkaji, Jangpura, Patparganj, Rohini, Chandni Chowk, Rajinder Nagar, Greater Kailash, Okhla, and Dwarka.
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Source : The Times Of India
