Sugar mills in UP urge government not to increase SAP of sugarcane
Sugar mills in Uttar Pradesh are urging the state government to maintain the current State Advisory Price (SAP) for sugarcane in the 2024-25 season due to rising production costs caused by a decline in sugar recovery rates. Millers face an additional cost of Rs 140 per quintal, while sugar prices remain stable. Uttar Pradesh, India’s largest sugarcane producer, has 120 mills, with 93 privately owned. The SAP was last increased by Rs 20 per quintal in 2023-24.
iGrain India – Sugar mills in Uttar Pradesh are urging the state government to maintain the current State Advisory Price (SAP) of sugarcane for the 2024-25 marketing season, citing rising production costs due to a decline in the recovery rate of sugar from sugarcane.
The private mills, which dominate the sugar production sector in Uttar Pradesh, are facing an increase in production costs of approximately Rs 140 per quintal due to this reduced recovery rate, which is reportedly down by 0.3 to 1.0 percent this season.
Despite these rising costs, the domestic price of sugar has not significantly increased, further complicating the financial situation for millers.
In Uttar Pradesh, unlike Maharashtra, a significant portion of sugar is produced by private mills. The SAP, which is typically set higher than the Fair and Remunerative Price (FRP) announced by the central government, was last increased by Rs 20 per quintal in 2023-24 for all sugarcane varieties, with the SAP for early sowing sugarcane set at Rs 370 per quintal.
Uttar Pradesh is the largest producer of sugarcane in India, with a large number of private sugar mills. Of the total 120 sugar mills in the state, around 93 are in the private sector, while the rest are in the cooperative sector or managed by the Uttar Pradesh State Sugar Corporation.
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Source : Investing.com
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