Buckling under pressure of private sugar millers the Akhilesh Yadav Government has decided not to increase cane price drawing barbs from the Opposition and farmers who called this decision as surrender before mill owners.
The State Cabinet that met here on Wednesday retained last year’s State Advisory Price (SAP) for sugarcane for crushing season of 2014-15. The SAP remained at Rs280 a quintal for the common variety. The prices for early and rejected/unsuitable varieties of cane have been retained at Rs290 per quintal and Rs275 per quintal respectively.
The SAP was hiked last time in 2012-13 when it was raised by 17 per cent. There is no increase in price for the last two years. State Principal Secretary, sugarcane development, Rahul Bhatnagar told reporters that this season the mills will have to pay Rs240 per quintal within 14 days of the purchase of the cane otherwise they will be charged an interest penalty of 15 per cent. Of the remaining Rs40, Government will provide Rs11.40 per quintal as subsidy through entry tax, purchase tax and society commission while Rs8.60 would be paid by the Government after the mills makes all the payments within three months after closure of their crushing.