Sugar factories announce increase in sugarcane SAP across varieties in Bihar

Bihar sugar factories raised the State Agreed Price (SAP) on all varieties of sugarcane from ??13 to ??20 over last year’s supply rates, officials said.

The new price was declared by the Bihar Sugar Mills Association (BSMA) after a meeting with Minister of Sugar Cane Industries Pramod Kumar, Departmental Secretary N Saravana Kumar and other senior officials recently.

Instead, the state government ensured to grant soft loans to factories to bear the loss on the purchase of sugar cane due to the fall in the selling price of sugar and enable them to negotiate the molasses sale price with buyers.

So far, sugar factories are forced to sell molasses to ??336 / quintal, as set by the government, although the sugar cane by-product is sold at double the rate in other states.

Association secretary Naresh Bhatt said farmers would be paid ??335 per quintal on good variety sugar cane, ??315 for the general variety, and ??285 for the quintal of poor quality sugar cane at the mills for the current grinding campaign. “The cost of both high and general sugarcane varieties is ??20 per quintal more than last season and ??13 more in the case of inferior sugar cane, despite the losses suffered by the owners of the mills during the last financial year ”, added the secretary of the BSMA.

The sap of the sugar cane, however, will be ??20 less per quintal, if farmers sell their products in purchasing centers far from sugar factories through different varieties.

In a statement released on Sunday, the association said the state government had agreed to grant subsidized loans to nationalized banks for a period of six years from the next fiscal year and to pay interest on the amount of the loan. ready to compensate for the loss due to the fall in the price of sugar. “The selling price of sugar has fallen by ??250 per quintal during the last month. This would force the millers to bear an additional loss of ??25 / quintal in payment of the revised SAP to farmers, ”said Bhatt.

The association claimed that the state government has agreed to relax the standards of excise policy that allow the former to set the selling price of molasses and the millers to sell the by-products at mutually priced agreed between them and the buyer. Molasses is used in the manufacture of ethanol, which is blended and used in fossil fuels for automobiles.

“The sugar factories would report the amount of molasses produced by them and the cost of sale agreed to by buyers to increase the Goods and Services Tax (GST) receipt and the issuance of movement permits,” Bhatt added.

The secretary of the sugarcane department, N Saravana Kumar, said the government has agreed to review their applications for the subsidized loan in the next fiscal year, as the state suffers a financial crisis from the pandemic. of Covid. “The sweets were also arranged for subsidized loans earlier to make up for lost SAP payments to farmers,” Kumar said.

Farmers will benefit from the Sugar Cane Sap Hike: 5 lakh

Revised SAP of good variety of sugarcane: ??335 / quintal

SAP difference compared to last year: ??13-20 / quintal

Total sugar cane crushed last season: 458.01 lakh ton

Quantity of sugar produced last season: 47.47 lakh ton

Rachel J. Bradford