UP govt mulls hike in SAP for Sugarcane
Uttar Pradesh, India's biggest sugar-producing region, is likely to do a marginal increase for the state advised price (SAP) on sugarcane, government sources said.
Last year, the state government had increased prices by 3.3% to Rs 315 a quintal. The state is expecting a 12% increase in cane production this year at 213.1 million tonnes and a similar increase in sugar production at 12.5-13 million tonnes.
As 51 mills out of the 121 in the state already started cane crushing, officials in the department said the government was likely to announce the SAP for sugarcane in the coming days.
“The hike can be similar to the previous year of Rs 10 a quintal,” said an official at the ministry.
The industry said it’s facing a deficit on its cash flows due to cane pricing and depressed sugar prices. Any further increase will impact them. Current wholesale prices of sugar in the state were ruling at Rs 31.5 a kg while the mills said that they need a minimum price of Rs 34-35 per kg to be profitable.
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