Sugar mills in Uttar Pradesh have requested the State government not to increase the prices at which sugarcane is purchased from farmers this year. In a letter written to the Chief Secretary of the State, the U.P. Sugar Mills Association (UPSMA) said that any increase in cane prices would hit them hard “as the cane industry has been going through losses for last three consecutive years”
Farmers in distress
The request comes days after distressed farmers of the State alleged that the present rate of ₹305 per quintal of cane was much lower than the total input cost that goes into the farming of cane in U.P.
Farmers have waged a campaign to increase the State Advised Price (SAP) to ₹400 per quintal.
Uttar Pradesh became the highest producer of sugar last year, contributing close to 42% of the total sugar production in India.
To push forth its request, the UPSMA reminded the Chief Secretary that the present Chief Minister Adityanath had, on several occasions, said that increasing the procurement rate for sugarcane was not the solution to the problems of the industry.
Last year, the Samajwadi Party (SP) government increased the SAP of sugarcane by ₹25 and fixed it at ₹305 per quintal.
The UPSMA also urged the government to give the mills the option of paying sugarcane prices in two installments, and decreasing the commission paid to cooperative societies to ₹2 per quintal from the present ₹7.65.
The cane crushing season is expected to start from October.
The letter said that “sugarcane prices in U.P. are undoubtedly higher as compared to other major sugar-producing States”.
Excess production
“The overall increase in sugar prices have been marginal when compared to the substantial rise in cane prices. Though sugar prices decrease, cane prices continue to go up. Main reasons for this has been excess production and increased supply,” said the UPSMA letter.
“The industry has been suffering continuous losses from 2011 and is barely able to stand on its feet,” the letter added.