UP government may raise sugarcane price by up to Rs 25/quintal
The new prices are likely to be announced by the end of the month or in October, after approval of the Cabinet Committee on Economic Affairs, according to sources.
The Uttar Pradesh government is likely to raise the support price of sugarcane by Rs 20-25 per quintal, as agreed in inter-departmental discussions, sources told Zee Business. A proposal in this regard is likely to be issued soon, they said.
The new prices are likely to be announced by the end of the month or in October after approval of the Cabinet Committee on Economic Affairs, the sources added.
Currently, the prices stand at Rs 350 per quintal for good quality, Rs 340 for average quality, and Rs 335 per quintal for poor or rejected quality sugarcane.
The new state-advised price (SAP) will be applicable for the current crushing season. The sugar marketing year in the country begins in October.
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The SAP determines the price farmers get for their produce from sugar mills. The likely hike will mean better compensation for farmers just ahead of the festive season in the country, which is due to start in November this year.
In late June, the Centre announced an increase of Rs 10 per quintal in the fair and remunerative price (FRP) of sugarcane to Rs 315 per quintal for the season beginning October. The FRP is the minimum price that mills have to pay to sugarcane growers.
The state-advised price is set by the governments of sugarcane-growing states and is generally higher than the fair and remunerative price.
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