Decision to keep sugarcane SAP stable at previous level in Uttar Pradesh

18-Feb-2025 03:57 PM

The decision by the Uttar Pradesh government to keep the State Advisory Price (SAP) of sugarcane unchanged for the 2024-25 marketing season comes amidst a complex set of circumstances.

The SAP will remain at Rs 370 per quintal, which was set for the 2023-24 season, despite farmers' demands for a higher price due to the SAP in neighboring states like Punjab-Haryana and Uttarakhand being higher.

However, sugar mills requested the government to maintain the SAP at the current level, citing various challenges, including a decreased yield of sugarcane and lower sugar recovery due to adverse weather conditions, pests, and diseases impacting the crop.

This decision essentially helps sugar mills by avoiding an increase in their cost of purchasing sugarcane, which could have been financially challenging given the present circumstances.

The reduced yield and recovery rates have put additional pressure on sugar mills, leading some to close earlier than planned.

The situation reflects the balance the government had to strike between the interests of farmers, who sought higher prices for their crop, and the sustainability of the sugar industry, which is already facing financial hurdles.

In comparison, the previous year's SAP increase of Rs 20 per quintal did help, but it didn’t fully resolve the ongoing problems faced by the mills, especially with the weather and pest-related setbacks.

Now, with the SAP holding steady, the focus may shift to addressing the underlying agricultural challenges and the potential impact on the sugar industry's long-term viability in Uttar Pradesh.