Crushing sugar

While the face-off between the Uttar Pradesh government and the sugar industry in the state continues over accepting cane from farmers for crushing, the government needs to pause and think about the consequences of its policies. In an attempt to be popular with the state’s 4 million cane farmers, Uttar Pradesh has traditionally announced a much higher ‘state advised price’ (SAP) than the central government-recommended Fair and Remunerative Price (FRP)—in FY12, the SAP was R240 per quintal versus R145 forthe FRP and in FY13, UP announced an SAP of R280 versus the FRP of R170. 

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