No hike in sugarcane price in UP: SAP stays at ₹370, major setback for farmers

The Uttar Pradesh government has not increased the State Advisory Price (SAP) of sugarcane for the current crushing season (2024-25). This time also the price of sugarcane in the state will remain the same as last year i.e. Rs 370 per quintal. On Monday, the Cabinet by Circulation decided to keep the sugarcane price unchanged. Although the official notification is awaited in this regard, according to sources, the Minister of Sugar Industry and Sugarcane Development has confirmed the decision to keep the sugarcane price at the same level as last season.

In the last crushing season (2023-24), the Uttar Pradesh government increased the sugarcane price by Rs 20 to Rs 370 per quintal for early varieties. However, in the current crushing season (2024-25), the state government has not raised the sugarcane price. This decision came when a major part of the crushing season had passed. Given the rising cost of cultivation and crop yield losses due to diseases, farmers were expecting the SAP to exceed Rs 400 per quintal. The government's decision has led to disappointment among farmers and significant resentment from farmers' unions.

Bhartiya Kisan Union (BKU) national spokesperson Rakesh Tikait, speaking to Rural Voice, called the freezing of SAP unfortunate. He accused the government of keeping farmers in the dark, as the price was not raised throughout the season, only to be declared unchanged when the season was almost over. Tikait stated that while many farmers' organizations were formed, they failed to mobilize significant movements. He emphasized that one must choose between power and farmers, noting that weakened farmers' unity.

The Rashtriya Lok Dal (RLD), once a strong voice of sugarcane farmers, has joined hands with the BJP. This has changed political equations in the sugarcane belt of Western UP. During the Meerapur assembly by-election, RLD President and Union Minister Jayant Chaudhary said that the sugarcane price should exceed ₹400. However, RLD leaders have remained silent on the government's failure to increase the sugarcane price.

Senior Samajwadi Party leader and former member of the State Planning Commission, Prof. Sudhir Panwar, criticized the BJP government for deceiving farmers. He pointed out that the sugarcane price was declared at the end of the crushing season rather than at the beginning, preventing farmers from protesting. Despite higher cultivation costs, UP farmers will receive Rs 30 less per quintal than farmers in Haryana and Rs 31 less than those in Punjab. SAP of sugarcane has been fixed at Rs 400 per quintal in Haryana and Rs 401 per quintal in Punjab.

Decreasing the Political Influence of Farmers

Given the profitability of sugar mills from multiple products, including sugar and ethanol, sugarcane prices were expected to reach Rs 400 this year. However, the fading influence of farmers in UP politics and new political dynamics are considered to be the reason for no increase in sugarcane prices. After the RLD’s alignment with the BJP, a vacuum was created in the sugarcane politics of Western UP, which the opposition parties and farmers' unions have failed to fill. Furthermore, The split in the farmer unions after the historic farmer movement has also had an impact. Farmer unions were unable to put pressure on the government to demand an increase in sugarcane prices.

Sugar Mills’ Argument

Since the beginning of the current crushing season, sugar mills in UP were not in favour of any increase in sugarcane prices. The sugar industry argues that due to rising operational costs and lower recovery of sugar, they are not in a position to increase the sugarcane price.

Officials from sugar industry associations told Rural Voice that an increase in sugarcane prices would lead to losses due to a 10% lower sugar recovery rate. Additionally, the government has not increased the minimum selling price (SMP) of sugar, nor has it raised the price of ethanol produced from B-heavy molasses. The Uttar Pradesh government's decision to maintain the current sugarcane price suggests alignment with the sugar mills' concerns.

Double Blow to Farmers

This year, sugarcane yield in Uttar Pradesh has fallen by 10-15% due to diseases like red rot and top borer, leading to financial losses for farmers. The absence of a price increase has compounded these losses, as farmers now face both reduced yields and higher production costs. The government has provided no relief to farmers to mitigate these challenges.

Increase of Rs 55 in 8 Years

Over the past eight years, the SAP of sugarcane in UP has been increased only three times—by Rs 10, Rs 25, and Rs 20 per quintal—mostly in election years, while it remained unchanged five times. In total, the sugarcane price has risen by just Rs 55 in eight years.

In 2017-18, the SAP of sugarcane was increased by Rs 10 to Rs 325 per quintal. The price remained unchanged for the next three years. In 2021-22, it was increased by Rs 25 to Rs 350 per quintal ahead of the February 2022 state assembly elections. The following year saw no increase. In the 2023-24 season, the sugarcane price was raised by Rs 20 to Rs 370 per quintal, a move aimed at appeasing farmers ahead of the 2024 Lok Sabha elections.