Belying expectations of a token hike in the sale price (set by the state) of sugarcane in an election year, the Uttar Pradesh government has decided to keep the rate unchanged for this 2018-19 season (which officially began October 1 and runs till end-September 2019).The 'State Advised Price' (SAP) for the common variety of cane in UP, the country's top sugar producer, stays Rs 315 a quintal. Farmer groups in UP had demanded Rs 400 a qtl, pointing to rises in input costs, such as of diesel, labourers' wages, fertiliser and so on. However, private sugar mills (94 in all) had reiterated their inability to pay growers at even the existing SAP. With the prevailing low sugar prices and depressed market outlook, any rise would only mean further accumulation of payment arrears, they had warned.Sugar companies have for several years been asking that the government-set price for cane be linked to the retail sugar price. The UP government has not taken a stand on this, although it had earlier .
Millers write to Yogi govt, cite precarious financial position due to massive arrears of previous crushing season
So far, the state's cane farmers have been paid Rs 1,511 cr by mills for their crop