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Our Bureau

Chennai, Oct. 18 The Uttar Pradesh Government on Saturday raised the State Advised Price (SAP) for sugarcane grown in the State by Rs 15 a quintal from last season’s price.

According to State Government sources, SAP for common variety sugarcane to be crushed during the current season that began this month will be Rs 140 a quintal. Last year, it was Rs 125 a quintal.

Similarly, SAP for early variety sugarcane has been fixed at Rs 145 (up from Rs 130) and for rejected variety, it will be Rs 137.50 a quintal (from Rs 122.50).

“The State Government had taken into consideration the studies made by Shahjahanpur Sugarcane Research Institute that the cost of production is Rs 118 a quintal for common variety and has added a profit margin of 20 per cent to arrive at the price of Rs 140,” sources connected with the growers said.

In announcing the SAP, the Uttar Pradesh Government has also set a precedent. Sugar mills need reservation order to buy cane from a specified area. The order is subject to an “agreed price” between the mill and the growers. Until last year, the the reservation order preceded SAP.

This gave leeway to the mills to challenge SAP, saying they would not have agreed to buy the cane had they known the price earlier.

The new system, now brought in by the State, means the SAP becomes the agreed price and, therefore, cannot be challenged in a court.

The path-breaking move comes after a bitter struggle between the sugar industry, Uttar Pradesh Government and the growers over SAP payment during 2006-07 and 2007-08. SAP has been challenged and various petitions are now pending before the Supreme Court for final verdict.

However, in an interim ruling, the apex court had on September 8 asked the mills to pay Rs 110 a quintal for the common variety without deducting transport charges for 2007-08 season.

“In fact, the payment is lower than what is being paid in Haryana and Punjab, where growers are getting Rs 160 a quintal,” said the sources connected to the growers.

More Stories on : Sugar | Agricultural Policy

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