Lucknow: India’s northern state of Uttar Pradesh has raised the minimum price for sugarcane by 12%, to be paid to farmers in the year ending September 2009, the state chief minister said late on Saturday.
The government asked sugar mills to pay Rs140 per 100 kg of sugarcane procured by farmers in 2008-09.
Uttar Pradesh is the country’s second largest sugar producer, behind Maharashtra and the minimum price for cane has been a contentious issue between the state and private millers, who procure and crush the cane to produce sugar.
The minimum price last year was fixed at Rs125 per 100 kg, which millers are currently contesting in courts.“We have revised the sugarcane purchase price for all sugar mills in the state from Rs125 to Rs140 per quintal,” state chief minister Mayawati said at a press conference. “The fixation of price was done after an exhaustive study of various factors and in consultation with all the parties involved,” she added.
This is for the first time that all stakeholders including farmers, millers and industry experts commonly agreed upon a price, state chief secretary Atul Gupta told Reuters.