UP sugar production to rise

sugarA report in the Financial Express has said that the sugar output in the state of Uttar Pradesh could rise by 31 percent over the previous forecast.

The sugar production could be as much as last year's 40.64 lakh tonne which is higher than the earlier forecast of 30-35 lakh tonne. The industry has faced many problems such as farmer agitation and low availability of the cane in the recent months.

The state has already achieved 30 lakh tonne in production. Some analysts not only expect the state to reach the level of the last year but also surpass it by March.

Due to the higher prices of sugar the mills are able to give the farmers almost Rs 100 per quintal extra than the lowest possible price fixed by the state. This has resulted in the mills getting cane directly from the farmers.

The mills are giving around Rs 260-265 per quintal officially to the farmers for cane and most farmers are not complaining any more and on the other hand are planning to sow cane in the next year as many mills are expanding capacity and increasing demand.

The area under cane cultivation has been declining in the country from 28.50 lakh hectares in 2007-08 to 21.40 lakh hectare in 2008-09 and further to 17.88 in 2009-10.