ARTICLE 4 #SugarPriceHike

A special meeting of the Sugar Advisory Board was held under the co-chairmanship of Ishaq Dar (Deputy Prime Minister) and the Federal Minister for National Food Security, Rana Tanveer Hussain, to review the sugar market situation, imported sugar stocks and the closure of the S-Track portal.

The decision, taken at a Cabinet meeting chaired by Chief Minister Yogi Adityanath, is expected to benefit nearly 45 lakh sugarcane farmers across the state. The hike comes ahead of the upcoming crushing season and follows sustained demands from farmer unions for better remuneration amid rising input costs.

The sugar and ethanol industry in India is under pressure due to rising costs, stagnant minimum selling/ethanol prices and increasing cane prices. Industry bodies have formally demanded a raise in MSP of sugar and the procurement prices of ethanol to ensure viability. The government has acknowledged the demand and is considering action.

The SAP rise is intended to benefit sugarcane farmers in UP by giving them higher assured price for their produce. This can boost their incomes. The increased cost of raw material (cane) squeezes margins, especially when sugar selling prices and ethanol procurement rates are not rising equivalently.