The Sindh government‘s Agriculture, Supply & Prices department has established a definite baseline for the forthcoming sugarcane crushing season in 2023-24.
Sugarcane Approved Support Price
However, the department has established a clear minimum price for sugarcane of Rs. 425 per 40 kg.
Therefore, this instruction requires the province’s Sugar Factories to implement a quality premium payout mechanism for cane growers at the end of the upcoming crushing season.
For each 0.1 percent (inclusive of fractional proportions to be prorated) of surplus sucrose recovery that exceeds the baseline of 8.7 percent, a premium cost of fifty paisa per 40 kg has been imposed.
This benchmark, based on each mill’s overall sucrose recovery scale, demonstrates the government’s commitment to incentivizing high-quality yield and excellence in the sugarcane business.
Present Retail Sugar Prices
However, it should be emphasized that retail sugar prices have already reached record highs of Rs. 150 to Rs. 170, and the decision, although giving farmers with fair compensation for their harvests, will result in further price increases in the following weeks.
Sugarcane was grown on 1.3 million hectares in 2022-23, yielding 91 million tons, a 4 percent increase in area and a 2.8 percent rise in production over prior years.
To read our blog on “Sugar mills request government approval to export sugar,” click here.
