In a strategic move to support sugarcane farmers grappling with rising production costs, the government has announced a notable increase in sugarcane prices. This initiative aims to enhance farmer profitability and encourage sustainable agricultural practices. Both Punjab and Bihar have raised their State Advisory Price (SAP) for sugarcane by ₹10 per quintal for the 2024-25 crushing season. With this increase, Punjab’s SAP stands at ₹401 per quintal, while Bihar’s SAP is set at ₹365 per quintal, bringing hope for improved financial outcomes for farmers.
Punjab has taken the lead in offering the highest sugarcane prices across India. Chief Minister Bhagwant Mann reaffirmed the state’s commitment to the agricultural community, stating that the new rates demonstrate their dedication to improving farmers’ livelihoods. The revised SAP for Punjab includes:
This latest hike follows a previous increase of ₹11 in December 2023, which brought the SAP to ₹391 per quintal. Comparatively, the central government’s Fair and Remunerative Price (FRP) is lower, at ₹340 per quintal.
The Punjab State Sugarcane Control Board initially planned to commence the crushing season on November 25, 2023. However, this schedule faced delays due to the Model Code of Conduct for by-elections in four assembly constituencies. Farmers’ groups, including the Doaba Kisan Sangharsh Committee, approached the Election Commission regarding the delayed SAP announcement. While the revised crushing season start date is yet to be officially declared, a decision is anticipated soon.
Punjab has witnessed a significant rise in sugarcane cultivation, with the total area under cultivation reaching 1 lakh hectares—a notable increase from 95,000 hectares the previous year. According to state data, Punjab operates nine cooperative and six private sugar mills, collectively expected to process approximately 700 lakh quintals of sugarcane. This price hike ensures better returns for farmers, further boosting agricultural productivity.
Bihar’s Sugarcane Price Increase Brings Relief:
Following Punjab’s lead, Bihar has also increased its SAP for sugarcane by ₹10 per quintal, setting the price at ₹365 per quintal for all varieties. The new rates have been communicated to sugar mills across the state to ensure farmers receive the revised prices promptly.
Revised SAP Rates for the 2024-25 Crushing Season:
Punjab SAP Rates:
Bihar SAP Rates:
Comparing SAP Rates in Major Sugarcane-Producing States:
Uttar Pradesh, India’s largest sugarcane producer, the government announced a ₹20 increase in January 2024. The revised rates are as follows:
The crushing season in Uttar Pradesh has already commenced in most sugar mills.
In Haryana, the SAP stands at ₹400 per quintal, while Uttarakhand’s SAP is set at ₹375 per quintal. These competitive prices reflect a nationwide trend to support sugarcane farmers and bolster the agricultural sector.
A Positive Outlook for Farmers: The increased SAP rates across Punjab, Bihar, and other states mark a significant step toward addressing the challenges faced by sugarcane farmers. By ensuring better financial returns, these measures aim to incentivize higher production and promote economic stability within the agricultural community.
As the crushing season unfolds, farmers can look forward to improved profitability and a brighter future.
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