Chandigarh, October 1

There will be no change in state advised price (SAP) of sugarcane in the state for the 2019-20 crushing season. The three different varieties of sugarcane grown in the state will fetch Rs 295, Rs 300 and Rs 310 per quintal.

This is the second year in a row that prices of cane are not being revised by the state. The sugar prices in the wholesale market have increased by Rs 700 per quintal to Rs 3,600 per quintal. Even the fixed and remunerative price (FRP) of cane, fixed by the Centre, has remained unchanged at Rs 275 per quintal.

Last year, sugar prices hovered at Rs 2,900 per quintal, resulting in losses to sugar mills which were unable to clear the dues of cane growers. It is after the Centre started allocating sugar quota for sale to each mill in the country that prices started looking up since earlier this year. The price of sugar to be bought from most private sugar mills now varies between Rs 3,500 and Rs 3,700 per quintal.

The prices of molasses (sheera), too, have gone up.

Top agriculture officials say they are not recommending any upward revision of SAP on cane. “This is because the state does not want to incur a liability of paying a part of SAP to cane growers selling their produce to private sugar mills,” an official said.

Last year, seven private sugar mills in Punjab, owned by politicians from different political parties, having 70 per cent of the state’s cane crushing capacity, refused to give SAP, claiming sugar prices were down to Rs 2,900 per quintal.