UP government keeps sugarcane SAP unchanged for 2014-15

The government of Uttar Pradesh has kept the State Advisory Price (SAP) of sugarcane unchanged for the 2014-2015 crushing season. The price of early ripening variety was kept at Rs 290, normal variety at Rs 280 and late variety at Rs 275 per quintal, which is the same as last season, by the State Cabinet. The sugar mills have to make a mandatory payment of Rs 240 per quintal to farmers within first 14 days of procurement or else they would have to pay a penalty. The remaining amount would be payable within three months after the completion of the crushing season. The mills who will be maintaining this payment schedule would be entitled to benefits of reimbursement and compensation in purchase tax and cane society commission as last year, which comes to Rs 20 per quintal. The millers have been demanding that the SAP be rolled back to Rs 225 a quintal, pointing out to their bleeding balance sheets while farmers were demanding an increase to Rs 320-350.