Cane crushing season nears, Punjab yet to announce SAP

Ruchika M Khanna

Chandigarh, November 14

Crushing of sugarcane in the state will begin on November 21, even though the state government is yet to announce the State Advised Price (SAP) for this year.

Though a final decision on SAP is to be taken at a meeting of the Sugarcane Control Board scheduled for later this week, sources say that faced with a low sugar recovery of 9.70 per cent and having the highest SAP in the country last year, the government is unlikely to announce an increase in SAP.

The SAP last year was Rs 380 per quintal, which was then the highest in the country. With Haryana now announcing a SAP of Rs 386 per quintal, the state government, facing three back-to-back elections (urban and rural local bodies and General Election), is under pressure to at least match it with the neighbouring state.

However, 70 per cent of cane crushing is done by seven private sugar mills, this year private sugar mills are reportedly not in agreement to increase SAP. With one private mill at Dhuri shut and the other mill at Phagwara scrambling to operate (the mill is yet to clear dues of Rs 40.72 crore of previous years), the government is unlikely to pressure them with another increase in SAP.

SAP was increased by Rs 50 per quintal in the 2021-22 season and by Rs 20 in the 2022-23 season. The state also has nine cooperative sugar mills.

The Centre has announced a price (FRP) of Rs 315 per quintal for this year if the sugar recovery is 10.25 per cent. If the sugar recovery is 9.70 per cent (as is the case in Punjab), the FRP would be Rs 295 per quintal. This year, the area under sugarcane is almost same as last year at 97,000 hectare. The sugarcane production of 677 lakh quintals is expected this year.