Punjab: Cane SAP likely to be increased by Rs 8

Ruchika M Khanna

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Chandigarh, November 22

Under pressure from the protesting farmers, the state government is mulling a minimal hike in the State Agreed Price (SAP) of sugarcane.

Initially, the government had decided to keep the SAP unchanged at Rs 380 per quintal.

Highly-placed sources said the government may accept the recommendation of Punjab Agricultural University (PAU) for increasing the SAP from Rs 380 per quintal to Rs 388 per quintal.

With a hike of Rs 8 per quintal, price offered to sugarcane growers in Punjab will be the highest across the country.

Till last cane crushing season, the SAP offered in Punjab was the highest in the country, though sugar recovery from cane was amongst the lowest.

While Haryana increased the SAP to Rs 386 per quintal, the SAP in other states is much lower. It is Rs 355 per quintal in Uttarakhand and Rs 350 per quintal in Uttar Pradesh. Sugar recovery in all these states is higher than Punjab’s sugar recovery of 9.70 per cent.

The Fair and Remunerative Price (FRP) announced by the Centre for this season is Rs 315 per quintal with 10.25 per cent sugar recovery.

Though a meeting of the Sugarcane Control Board was scheduled for today, the meeting has been reportedly postponed.

Officially, the crushing season began on November 21, but the SAP has not been announced yet.

As a result, no cane has been purchased by six private (Bhagwanpura Sugar Mill has announced not to crush any cane) and nine cooperative sugar mills.

In fact, sugarcane growers in Doaba have been protesting and demanding that the SAP of sugarcane be increased to Rs 450 per quintal.

This year, the area under sugarcane is 97,000 hectares and production is expected to touch 677 lakh quintals.