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Lok Sabha
In Maharashtra, the Statutory Minimum Price (SMP) of sugarcane, fixation of which inter alia takes into consideration the cost of production of sugarcane and the return to the grower from alternative crops is applicable, is Rs. 74.50 per quintal, linked to a basic recovery of 8.5% and a premium of Rs. 0.88 for every 0.1% increase in recovery above that level for 2004-05 sugar season. In the State of Uttaranchal, the sugarcane farmers are paid as per the State Advised Price (SAP) for 2004-05 sugar season, which is Rs. 104.50 per quintal for Unapproved Variety, Rs. 107 per quintal for General Variety and Rs. 112 per quintal for Early Variety and these rates are the same in Uttar Pradesh.
The Supreme Court has held that States which have enacted legislation regarding regulation of supply and purchase of sugarcane have the right to fix prices for sugarcane purchased by sugar mills which can be higher than the Statutory Minimum Price determined by the central government.
This information was given in Lok Sabha today by Dr. Akhilesh Prasad Singh, Minister of State for Consumer Affairs, Food and Public Distribution.
SBK:CP:lol(ii)22.8
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