UP Cabinet approves raising state advised price of sugarcane by Rs 20/quintal

Uttar Pradesh government, led by Yogi Adityanath, raises sugarcane MSP by ₹20 per quintal across all three categories in Lucknow cabinet meeting.

The Uttar Pradesh Cabinet on January 18 approved raising state advised price (SAP) of sugarcane by Rs 20 per quintal to around Rs 370 for early sown varieties in the crushing season 2023-2024. The decision comes ahead of the 2024 general elections.

It was approved by the state cabinet, as a measure to provide relief to farmers awaiting a positive development in sugarcane pricing. As per a News18 Hindi report, the Yogi government has cleared the arrears worth Rs 2.2 lakh crore in the last six years in UP.

UP is one of India’s largest sugarcane-producing states with almost 4.5 million farmers directly dependent on the crop. About 42 lakh families and 45 lakh labourers are engaged in sugarcane cultivation.

As per the new decision, the early variety will fetch Rs 370 per quintal while the common variety price will be Rs 360 a quintal, Minister, Sugar Industry and Cane Development Department, Laxmi Narayan Chaudhary said in press briefing.

Besides the fair and remunerative price (FRP) on the crop announced by the Union government, the SAP is determined by the government of sugar-producing states considering the cost of production in specific regions.

After today's hike in sugarcane SAP, the Yogi government has raised the cumulative support price by Rs 55 per quintal in the last seven years.

In 2017, the cane price was Rs 315 per quintal, he said, adding that in the previous regime sugar mills in the state were on the verge of closure.

Earlier, Punjab Chief Minister Bhagwant Mann had also announced a hike of Rs 11 per quintal in sugarcane price, saying the new rate of Rs 391 a quintal is the highest in the country. However, farmers said the appreciation in cane price is ''too meagre'' and termed the state government's move as ''betrayal''.

Neighbouring state Haryana had also last month announced a hike of Rs 14 in the sugarcane price to Rs 386 a quintal.

(With inputs from PTI)