To offset the higher production costs brought on by inflation, the Punjab Government is anticipating raising the support price of sugarcane to Rs. 425/ 40 kg.
The sugarcane support price will increase by 42%, to Rs. 425 per 40 kg, according to the food department. The cabinet has received a summary of the updated sugarcane rates for approval.
It is important to note that the retail price of sugar is currently +Rs. 150 per kg.
A review of agricultural support prices is conducted annually to account for increases in the price of inputs like fuel, electricity, fertiliser, pesticides, labour, and other expenses.
For it to be profitable, sugarcane growers have been requesting higher sugarcane support prices of at least Rs. 550. Nevertheless, the Pakistan Sugar Mills Association claims that the cost of producing sugar will go up even more.
Because it requires a lot of water to grow and requires expensive diesel and electricity for irrigation, sugarcane has been getting more and more expensive for farmers to produce. However, in light of this choice, sugar prices will inevitably rise further, whether or not farmers are happy with the increase.
