UP govt may keep cane SAP unchanged this year
In Uttar Pradesh, sugarcane growers await the state government’s decision on revising the State Advisory Price (SAP) after the 8% hike in the Fair and Remunerative Price (FRP) for 2024-25. The BJP ally RLD is demanding an SAP of ₹400 per quintal, but the government may keep it unchanged to ease mill owners’ financial burden. In 2023-24, sugar mills paid over ₹30,000 crore, clearing 95% of dues. Uttar Pradesh, India’s largest sugarcane producer, contributes 40% of the national output.
Lucknow: With an increased Fair and Remunerative Price (FRP) for sugarcane coming into effect in the ongoing cane crushing season, all eyes are on the possibility of the UP govt revising the State Advisory Price (SAP) for the high-demand cash crop in the state.The Cabinet Committee on Economic Affairs raised the FRP by 8% for 2024-25 in Feb. The rate is primarily fixed for a sugar recovery rate of 10.25%. The new FRP came into effect on Oct 1.Highly placed sources said that the state govt is expected to call a high-level meeting soon to decide on the issue, which potentially impacts the interests of around 45 lakh cane growers in UP.A senior official said that the state govt seeks to tread cautiously on the issue of SAP, which is fraught with political ramifications, primarily in the politically sensitive west UP region. Speculations are rife that the govt may not revise the SAP this year, in what is seen as a move to lighten the burden of mills that have been erring on payment of dues towards the farmers.
BJP ally RLD has been demanding a SAP of Rs 400 per quintal.Party spokesperson, Rohit Agarwal, said that this is the key demand raised by the party. “We are also in touch with the cane mills to settle the pending arrears due towards the farmers,” he said.Significantly, it was only in Jan this year—just before the Lok Sabha elections—when the state govt raised the SAP by Rs 20 per quintal. As a result, the SAP for general and early maturing varieties went up from Rs 340 and Rs 350 to Rs 360 and Rs 370 per quintal. For the late variety, the value saw an escalation in SAP from Rs 355 to Rs 355 per quintal.
This was not the case in 2023 when the state govt kept the SAP unchanged, allowing the industries to cover up their pending arrears. Data shows that by the end of the 2023-24 crushing season in July, sugar mills made a payment of over Rs 30,000 crore to farmers. This was more than 95% of the total payment due.UP happens to be the largest producer of sugarcane in India, accounting for around 40% of the total production.
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Source Link : Times Of India
