The SAP would be higher than the Central Government’s Statutory Minimum Price (SMP) for sugarcane growers, he said. He has proposed an SAP of Rs 1,500 per tonne, excluding transportation and harvesting charges. At present, the SMP is around Rs 1,370 per tonne.

“In 2006-07, the sugarcane production had shot up to 90 lakh tonne, this year it is down to 45 lakh tonne. If the state government does not give sugarcane growers a better deal, then more farmers will opt out of sugarcane,” said Gidwani, while addressing a press conference in the city.

Gidwani said the prices of sugar would be difficult to control. Sugar is already priced at Rs 23 per kg, he said. “This is the first time in 15 years that the government does not have the mandatory buffer stock for sugar before crushing season begins in October. “It should have around 50 lakh tonne. But the buffer stock at the moment is only around 15 lakh tonne,” he said.

He said the production had dropped in the last few years because of a lack of state government attention on sugarcane sector. “It has been neglected. Many farmers, in the last three years, did not even get the mandatory SMP, which prompted them to opt out of sugarcane production. Farmers need more incentive to take up sugarcane cultivation this year,” he said. This year, the projected sugar production was 265 lakh tonne, but actual production was only around 165 tonne. “At present, we are buying sugar at Rs 25 per kg. Till last year, we were exporting sugar at Rs 10-11 per kg,” he said.

Gidwani said the state government had promised to take action on his proposal in a fortnight.