Punjab Government is likely to increase the support price of sugarcane to Rs. 425 per 40 kg to compensate for the increased cost of production due to inflation.
The food department has decided to raise the sugarcane support price by 42 percent to Rs. 425 per 40 kg. A summary of the revised sugarcane rates has been submitted to the cabinet for approval.
It bears mentioning that sugar is currently priced at +Rs. 150 per kg (retail).
Agricultural Support prices of commodities are reviewed every year to compensate for the increase in input costs such as diesel, electricity, fertilizers, pesticides, labor, and other costs.
Sugarcane growers have been demanding higher sugarcane support prices somewhere around Rs. 550 or more to make it worthwhile. Still, Pakistan Sugar Mills Association states that it will further increase the sugar cost of production.
Sugarcane is a water-intensive crop and since its land preparation and irrigation cost a lot of diesel and electricity, it’s been becoming gradually unaffordable for farmers to grow. But regardless of whether farmers will be satisfied with the increase or not, sugar prices are bound to increase further in light of this decision.
