Uttar Pradesh Sugarcane Farmers Anticipate Record Payouts in 2023-24 Crushing Season

As the 2023-24 sugarcane crushing season kicks off in Uttar Pradesh, farmers in the state are gearing up for record payouts, expected to exceed Rs 36,000 crore. The annual sugar season, spanning from October to September, commenced on October 1, with crushing operations set to intensify in the upcoming weeks, starting from Western UP and gradually covering the entire state.

Last year, the state’s sugar production reached nearly 10.7 million tonnes (mt). Uttar Pradesh houses a total of 120 sugar mills, with the private sector leading at 93 plants, followed by the cooperative sector with 24, and UP state sugar corporation with three. Approximately 4.5 million households are directly involved in sugarcane farming in the state.

For the current season, the sugarcane area spans 2.85 million hectares, with an estimated production of 235 mt. The Yogi Adityanath government is anticipated to increase the cane state advised price (SAP) to align with the upcoming 2024 Lok Sabha elections. SAP represents the price mills pay farmers for cane procurement, exceeding the fair and remunerative price set by the Centre.

Currently, SAP for common cane varieties stands at Rs 340 per quintal (100 kg), while early and late maturing varieties are priced at Rs 350 and Rs 335 per quintal, respectively. The industry has cautioned against a SAP hike, citing rising production costs and losses due to the molasses quota policy, essential for ethanol production. Avantika Saraogi, the promoter of Balrampur Chini Mills Limited, highlighted their focus on ethanol, constituting 30% of the firm’s revenue. The company has invested Rs 1,200 crore to enhance distillery capacity, benefiting all stakeholders, including farmers and the industry, owing to supportive policies from the Union and UP governments.