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Apprehending hike in cane prices this season, private sugar mills have petitioned the state government urging it not to increase State Advisory Price (SAP) as ‘it would be detrimental for the industry and cane sector. In a letter despatched to Principal Secretary, Sugar and Cane Development, Uttar Pradesh Sugar Mills Association (UPSMA) secretary general Deepak Guptara said that the present SAP should not be increased in the overall interest of the farmers and the industry. As of now, the SAP stands at Rs 305 per quintal and sources claimed that Yogi Government wants to increase it between Rs 10 and 15 per quintal. The previous Samajwadi Party regime had increased cane price by Rs 25 per quintal last year. Sugar prices are subject to market variations and can go up and down as per demand. Overall increase in sugar prices is marginal as compared to SAP in previous years. There are times when sugar prices go down because of excess production of sugarcane but the SAP increases. This imbalance has hit the sugar industry hard. UPSMA official said that once SAP was increased, it cannot be reduced even when sugar prices fall. In such situation cane price arrears accumulate and sugar mills incur losses.

The government is expecting about 24 per cent increase in the country’s total sugar output to around 25 million tonnes in the marketing year beginning next month on likely higher output in Uttar Pradesh and Maharashtra following good rains. This is an initial projection based on the inputs of the state governments. The country’s sugar output in the ongoing 2016-17 marketing year (October-September) is estimated to be lower at 20.2 million tonnes because of poor rains. India is the world’s second biggest sugar producer. In a meeting with state cane commissioners called by the Union Food Ministry, official sources said state governments have submitted the sugar production figures after assessing the likely sugarcane output and recovery level. Based on their inputs, the country’s overall sugar output is expected to be around 25 million tonnes in 2017-18 marketing year,

Owing to a sugar shortage in the country, the government had planned to start the crushing of sugarcane ahead of the normal schedule- before Diwali (October 19)- but the delay in the monsoon’s retreat has put paid to this plan. According to the sugar industry, heavy rains are again expected in October in Karnataka and Maharashtra- states where the cane crushing starts first- due to the lingering monsoon. It means labourers cannot access the cane fields as they will be muddy during this period. The National Federation of Cooperative Sugar Factories (NFCSF) has said that the crushing could start from November. There is heavy rain in Karnataka and Maharashtra. Its occurrence in October also will make it impossible for labourers to go into the fields. Due to this, the crushing work is expected to start only in November. However, in case the monsoon recedes completely by mid-October, crushing might start in Karnataka after Diwali. Due to the delay in the monsoon’s retreat, Maharashtra has decided to postpone the cane crushing to November 1.

U.P. private sugar mills urge govt not to increase State Advisory Price.

The prices of sugar fell in the key wholesale markets of the country on Thursday amid increased selling pressure on mills. Prices of medium-grade sugar down rs 5 in the markets of Delhi and Muzaffarnagar, and rs 10 per 100 kg lower in Mumbai and Kolhapur. Millers are quoting lower prices as there is no demand at current price levels despite it being the festival season. Mills also have to adhere to stock limits. The government has imposed stock holding limits on sugar mills for September and October to keep prices in check ahead of major festivals. Sugar mills can hold up to 21 per cent of the total sugar supply of the 201617(October-September) season as of the end of September, and 8 per cent of the supply as of the end of October. Demand for the sweetener has been low since the beginning of the month. Some sugar mills in western Uttar Pradesh are likely to begin cane crushing for 201718 (October-September) on October 10.

Govt sees 24% jump in sugar production to 25 MT in 2017-18.

With less than a month remaining for sugarcane crushing to begin in the new season, it’s time for the annual ritual of confrontation between farmers and private millers in Uttar Pradesh on the issue of price to be paid to cane growers. As every year, both the stakeholders hold diametrically opposite views on what should be the “right price” that the farmer should get for his produce. At a meeting of the cane price fixation committee under the chairmanship of Uttar Pradesh chief secretary, the farmers demanded Rs 375-400/quintal while the millers categorically stated that they are in no condition to pay anything beyond last year’s State Advised Price (SAP) of Rs 305 per quintal.

Delay in monsoon’s retreat postpones sugarcane crushing.

Sugar prices fell Monday amid expectations for greater rain in Brazil in the coming days, adding to concerns about a global glut of the sweetener. Raw sugar for October delivery dropped 1% to 13.84 cents a pound on the ICE Futures U.S. exchange. The precipitation will begin as isolated to scattered showers during the early to middle part of this week and then increase.

India spot sugar prices down on selling pressure.

Sugarcane price fixation sparks row between farmers, millers in Uttar Pradesh.