UP sugar price surge ahead of polls raises hopes of better returns for sugarcane farmers
Rising sugar prices in Uttar Pradesh have raised hopes among sugarcane farmers for higher returns ahead of next year’s elections. Wholesale prices have reached Rs 4,400 per quintal, while lower sugar stocks, reduced cane production and ethanol diversion are supporting prices and improving mills’ profitability.
Bijnor: Rising sugar prices in Uttar Pradesh ahead of next year’s elections have raised expectations among sugarcane farmers that the state government may offer them better returns. Wholesale sugar prices have reached around Rs 4,400 per quintal, the highest level in seven years.
Sugarcane is a major crop in the state, with more than 2.55 lakh hectares under cultivation in Bijnor district alone. Farmers are closely watching sugar prices as they influence the financial position of sugar mills and their ability to make timely payments, Jagran reported.
With elections due next year, farmers are hoping that stronger sugar prices will translate into a higher sugarcane price. The Uttar Pradesh government fixes the price of sugarcane, while mills depend largely on sugar sales to meet their payment obligations.
Sugar prices had remained around Rs 3,900 per quintal or below for several years after the Covid-19 pandemic. Increased sugarcane production had pushed up sugar output and stocks, putting pressure on market prices. Mills subsequently increased their focus on ethanol and other options to reduce sugar production.
The market has now changed, with lower sugarcane production, reduced stocks and diversion of cane towards ethanol supporting sugar prices. Despite the Centre’s restrictions on sugar exports, wholesale prices have continued to rise. Ex-factory prices could reach around Rs 5,000 per quintal if the current demand continues.
Lower stocks strengthen farmers’ expectations
Sugar mills in Bijnor have around 20.62 lakh quintals of sugar remaining, compared with 35.50 lakh quintals last year. The lower stock position could support sugar prices if demand remains strong.
Mills in the district produced 90,86,458 quintals of sugar and had 20,62,856 quintals remaining. The figures exclude Chandpur sugar mill.
Bijnor mills also crushed around 1.30 crore quintals less sugarcane this season than in the previous year. Lower cane production and higher sales to traditional crushers reduced the quantity available for mill crushing and contributed to lower sugar production.
Retail sugar prices have also climbed to Rs 52 per kg or more, although the direct impact on ordinary consumers is expected to remain limited as they account for less than 6% of total sugar consumption.
“Sugar prices are much better compared with previous years. Mills are currently making profits. The government should fix the sugarcane price at a level that encourages farmers to continue cultivation,” said Digambar Singh, youth state president of the Bharatiya Kisan Union (Non-Political).
“Sugar prices have improved this year, but considering production costs, there is scope for further growth. Better sugar prices will help mills make sugarcane payments to farmers more quickly,” said Ravindra Shukla, unit head of Bijnor Sugar Mill.
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Source : ChiniMandi
