Sugar producers in Uttar Pradesh, India’s largest cane grower, have started processing the crop, according the Uttar Pradesh Sugar Mills Association.
“About 6-7 mills have started crushing and the others in western Uttar Pradesh are likely to begin next week,” Shyamlal Gupta, secretary of the association, said in a phone interview.
Mills are paying farmers 205 rupees per 100 kilograms (220 pounds) for normal-variety cane, matching prices fixed by the provincial government, he said.
Uttar Pradesh on Nov. 2 raised cane prices to as much as 210 rupees for the season started Oct. 1, from 170 rupees last year. Producers in the northern state, home to more than 100 mills, pay a state-advised price that’s usually higher than the floor rate fixed by the federal government.
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