UP sugarcane farmers face uncertainty as crushing season begins without declaring SAP

As the sugarcane crushing season for 2024-25 commenced in Uttar Pradesh, farmers are still waiting for the government to announce the State Advisory Price (SAP) for sugarcane. This delay, a recurring issue in recent years, forces farmers to sell their crops to sugar mills without knowing the price they will receive. Although the central government increased the Fair and Remunerative Price (FRP) to Rs. 340 per quintal in February, the state-level SAP remains undeclared more than a month into the crushing season. This delay is largely attributed to the state’s evolving political scenario.

Sugarcane farmers have traditionally held significant influence over UP's politics. However, this influence appears to be fading since the Rashtriya Lok Dal (RLD), a party with a support base among farming communities in Western UP, allied with the BJP. As a result, the delay in announcing the sugarcane price has not become a major issue in this season and there is also a silence over demands for an increase in SAP. 

In a state where approximately 45 lakh families rely on sugarcane farming, contributing over Rs. 50,000 crore annually to the economy, sugarcane farmers have traditionally wielded considerable political influence. However, the alliance between the RLD and BJP at both the central and state levels has dampened farmers' pressure. Consequently, the issues of sugarcane farmers have been sidelined, despite upcoming by-elections on November 20 for nine assembly seats in the state, including Mirapur, Kundarki, and Khair seats in sugarcane-producing Western UP. Principal opposition party in the state Samajwadi Party is also silent on this issue. 

Rajendra Singh, a farmer from Pundri village in Bijnor district, notes that this year neither the RLD nor farmer unions have been able to protest vigorously for a higher sugarcane price. He attributes this silence to weakened farmer organizations and the RLD’s alliance with the BJP. Before this alliance, the RLD had consistently advocated strongly on behalf of sugarcane farmers.

Will Sugarcane Price Cross Rs. 400?

With rising demand for ethanol and sugar products, the Khandsari industry (jaggery and crushers) paid up to Rs. 400 per quintal for sugarcane last year, raising expectations for the SAP to reach Rs. 400. However, this year, the likelihood of sugarcane prices crossing Rs. 400 appears dim. Industry sources say that sugar mills are not in favour of increasing the sugarcane SAP this year, while they demand an increase in the minimum selling price (MSP) of sugar and the price of ethanol.

Bhartiya Kisan Union national spokesperson Rakesh Tikait has called for the sugarcane price to be set at Rs. 500 per quintal in light of rising inflation and production costs, with outstanding payments made with interest. Despite this demand, the Bharatiya Kisan Union has also been less assertive on sugarcane farmers' issues this season. The weakening of farmer unions after the historic farmers' movement has reduced their political leverage.

Farmer leader Tajinder Singh Virk from the Terai region believes that farmers need to reunite on their issues to regain political influence.

Only Rs 55 increase in Eight Years

UP’s main opposition party, the Samajwadi Party, has not taken much interest in sugarcane farmers' issues. In the last eight years, the SAP of sugarcane in UP has increased by only Rs. 55. In 2017-18, the SAP of sugarcane was raised by Rs10, setting the price at Rs. 325 per quintal, which remained unchanged for the next three years. Before the 2022 assembly elections, the state government increased the SAP by Rs. 25 for the 2021-22 season, fixing it at Rs. 350 per quintal. That year, SAP was announced in September 2021, even before the crushing season began. However, in the next year, the SAP was not announced until January, and eventually, there was no increase for the 2022-23 season.

For the 2023-24 season, the SAP was announced three and a half months after the crushing season began. Then, the sugarcane price was increased by Rs. 20 to Rs. 370 per quintal for early varieties, Rs. 360 for normal varieties, and Rs. 355 per quintal for unsuitable varieties. Reason behind this increase was 2024 Lok Sabha elections. 

Higher Rates in Haryana and Punjab

Neighbouring states like Punjab, Haryana, and Uttarakhand currently offer higher SAP for sugarcane.In Punjab, the Aam Aadmi Party government had fixed the SAP of sugarcane at Rs. 391 per quintal for the 2023-24 season. In Haryana, the SAP was Rs. 386 per quintal last year, and the then-Chief Minister Manohar Lal announced that the SAP for the 2024-25 season would be Rs. 400 per quintal. Meanwhile, the SAP in Uttarakhand was Rs. 375 per quintal last year, compared to Rs. 370 per quintal in Uttar Pradesh.