UP sugar output nears 1 million tonne mark already

So far, the state's cane farmers have been paid Rs 1,511 cr by mills for their crop

sugar
Virendra Singh Rawat Lucknow
Last Updated : Nov 24 2017 | 7:31 PM IST
Uttar Pradesh's sugar production is nearing a million tonnes (mt) in the ongoing crushing season.

The state is the country's top sugar producer and is targeting output of almost 11 mt, a fifth higher than last year. According to official data, the state's mills had collectively crushed nearly 11 mt of cane so far, producing a shade less than one mt of sugar, at average recovery of 9.75%.

In the previous crushing season, half this much sugar was produced in the same time span, sugar recovery being 9.66%.

Sanjay R Bhoosreddy, the state government's cane and sugar commissioner, said about 100 mills had started crushing operations, after a directive for timely start. Early harvest of cane allows farmers to sow wheat in time and add to their profit.

So far, the state's cane farmers hav4 been paid Rs 1,511 crore by mills for their crop. By the law, payment should be within 14 days of sale of crop at the mill gate. Last year, cane farmers had been paid about Rs 325 crore in the corresponding period. Local body polls are on in UP and the government had, on October 26, hiked the State Advised Price for cane (SAP, the legal floor) by Rs 10 a quintal for the 2017-18 crushing season.

With this hike, projected improved sugar recovery and higher cane sowing, the government had projected UP sugar output to touch 11 mt and total farmer payables at almost Rs 30,000 crore, compared to about Rs 25,000 a year before. Against Rs 305 a quintal for the common variety of cane a year before, the SAP for 2017-18 is now Rs 315 a quintal. For the early maturing variety, it is Rs 325 a quintal. Almost 70% of the crop is the common variety.

Last season, UP's sugar output was about 8.75 mt. Sowing this season is estimated at nearly 2.3 mn hectares, up 11.2%. The state's sugarcane department had distributed 0.6 mt of high quality seed to improve productivity and sugar recovery.

One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Next Story