UPSMA Pleads Not to Increase SAP, Seeks Subsidy & Ease Cane Payment

UP Sugar Mills Association (UPSMA), a sugar miller’s body has appealed to the State government not to increase the State Administered Price (SAP) of sugarcane with few other suggestions in this regard as the sugar recovery rate of this year’s sugarcane crop is relatively lower as compared to earlier; hence effecting cost of production.

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By : Sugar Times | 27 Nov, 2020 | 11:53 AM

logoLucknow: UP Sugar Mills Association (UPSMA) has requested the State government not to increase the State Administered Price (SAP) of sugarcane as the recovery rate of this year’s sugarcane crop is relatively lower as compared to earlier.

According to data gathered from sugar mills across various regions of the state and observance, the sugar recovery is lower in the range from 0.50% to 0.80%; therefore, this range is widening in the daily recovery of current season vs last season and a worrisome trend can be observed.

The reasons behind lower recovery has also been instigated and on search found the experts rainfall pattern has been good and varietal balance is also similar to the earlier year; so, the main reason could be because of prevailing climatic conditions only. To take it forth, it is unlikely the trend will come to normal as the gap is huge and is widening season to season.

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UPSMA has also explained through its letter to the Chief minister that the drop in recovery has impacted a cost of production of sugar in the range of Rs. 125 per qtl to Rs. 200 per qtl amid when the sugar mills are facing financial resource challenges.

The miller’s body through its president CB Patodia has pleaded the state government, (a)To maintain the sugarcane price at last season level (b)To provide a subsidy of Rs. 15 per qtl to enable them to compensate for the increase in cost of production due to lower recovery and (c)Allow payment of sugarcane price in 2-3 instalments to reduce the working capital and allow cane price payment to all sugarcane growers uniformly.

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