The Punjab government would announce the State Assured Price (SAP) of advanced, medium and late variety of sugarcane in a fortnight, said sources in the state government in touch with the development.
The Sugarcane Control Board, constituted by the state, will announce the SAP before the commencement of the crushing season.
Speaking to Business Standard, one of the sources said the crushing season will commence from December 1, 2012. “ We are working on modalities and very soon, say in a fortnight, decision will be taken in this regard.”
For the crushing season of 2011-12, the state government fixed the State Assured Price (SAP) of advanced, medium and late variety of Sugarcane at Rs 230, Rs 225 and Rs 220 per quintal. Further, the state government had fixed the SAP of advanced, medium and late variety of sugarcane at Rs 200, Rs 195 and Rs 190 per quintal for the crushing season of 2010-11
Insiders opine that the government will have to announce remunerative price for the crop so in order to promote diversification and encourage farmers to take up sugarcane cultivation.
The total estimated area under sugarcane cultivation in the state is 84,000 hectares this year while last year it was 80,000 hectares. Further according to provisional estimate, sugar output in Punjab is likely to touch 38 lakh quintals (3.8 million quintals) in the current crushing season, which is more or less similar to last year’s data.
Sharing details, Dr Ranjit Singh, Cane Commissioner, said, “ This year, the total area under the crop is 84,000 hectares compared to 80,000 hectares last year. The final data is yet to be compiled, but going by provisional estimates, the average yield would be around 666 quintals per hectare compared to 700 quintals last year. Overall, the total production of cane would be 560 lakh quintals more or less same compared to last year because of the decrease in yield. Further, we expects the sugar output will be 38 lakh quintals, if we look at the initial estimates.”
This year, it is expected that the 16 sugar mills in the state would crush 380 lakh quintals of cane. The state has 9 mills running under the cooperative system with installed capacity of 15,766 TCD (tonnes crushed per day). and seven in the private sector having an installed capacity of 31,000 TCD It may be noted that in the past few years, the state had witnessed a substantial increase in sugar productions — 18.20 lakh quintals in 2009-10; 30.20 lakh quintals in 2010-11; and 38 lakh quintals in 2011-12.
Last year, the state witnessed dramatic increase in sugar output over the previous year.
A senior officials in the cane commissionerate, while speaking to Business Standard said, last year the sugar output in the state touched 38 lakh quintals as compared to 30.20 lakh quintals during the previous season.
The increase in output is mainly because of increase in area coupled with expectations of better recovery(of sugar) as compared to last year.
The total estimated area under sugarcane cultivation in the state is 84,000 ha this year while last year it was 80,000 ha