UP govt announces sugarcane SAP for 2014-2015

Uttar Pradesh government today announced the state advisory price (SAP) of sugarcane for the 2014-2015 crushing season.
The state Cabinet presided over by Chief Minister Akhilesh Yadav decided to maintain the price of early ripening variety at Rs 290, normal variety at Rs 280 and late variety at Rs 275 per quintal, which is the same as last season, Rahul Bhatnagar, principal secretary, cane development department, said.
It would be mandatory for sugar mills to make a payment of Rs 240 per quintal to farmers within first 14 days or else they would have to pay a penalty, Bhatnagar said.

The remaining amount would be payable within three months after the completion of the crushing season, Bhatnagar said, adding that mills maintaining this payment schedule would be entitled to benefits of reimbursement and compensation in purchase tax and cane society commission as last year, which comes to Rs 20 per quintal.
To a question that last year this mandatory payment amount was fixed at Rs 260 instead of this year's Rs 240, Bhatnagar said that last year's experience was not good as those selling their produce early managed to get this amount but the payments of those left behind got delayed.

Bhatnagar added that 676 lakh tonnes cane is estimated to be crushed this season.
So far, two mills have started crushing and by month end 80 per cent mills will start crushing, he said.
He further said that more than 90 per cent payment of last year's crushing has been cleared but the outstanding dues of sugar mills stood at around Rs 1,800 crore.