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Govt Approves Rs 25 Hike in Sugarcane FRP Amid Ongoing Farmers' Protest

The Cabinet Committee on Economic Affairs has approved a historic Fair and Remunerative Price (FRP) for sugarcane in the Sugar Season 2024-25.

Shivam Dwivedi
Govt Approves Rs 25 Hike in Sugarcane FRP Amid Ongoing Farmers' Protest (Photo Source: Pexels)
Govt Approves Rs 25 Hike in Sugarcane FRP Amid Ongoing Farmers' Protest (Photo Source: Pexels)

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given the green light to the Fair and Remunerative Price (FRP) of sugarcane for the upcoming Sugar Season 2024-25. Set at Rs 340 per quintal, with a sugar recovery rate of 10.25%, this decision marks a significant milestone in the agricultural sector. Notably, this price is approximately 8% higher than the FRP for the current season, 2023-24. The revised FRP will come into effect from October 1, 2024.

Ensuring Prosperity for Sugarcane Farmers

The new FRP, calculated at 107% higher than the A2+FL cost of sugarcane, is poised to bolster the prosperity of sugarcane farmers across the nation. India already offers the highest price for sugarcane globally, and despite this, the government remains committed to providing the most affordable sugar to domestic consumers. This decision is anticipated to benefit over 5 crore sugarcane farmers, including their family members, as well as countless individuals involved in the sugar sector.

Mechanism of Price Calculation

Under the approved FRP, sugar mills will pay Rs 340 per quintal of sugarcane at a recovery rate of 10.25%. For every 0.1% increase in recovery, farmers will receive an additional 3.32, while the same amount will be deducted for each 0.1% reduction in recovery. However, it's important to note that Rs 315.10 per quintal is established as the minimum price of sugarcane, applicable at a recovery rate of 9.5%. This assurance ensures that even if the sugar recovery is lower, farmers are guaranteed the FRP.

Over the past decade, the Modi government has consistently prioritized ensuring that farmers receive the right price for their crops at the right time. As evidence of this commitment, 99.5% of cane dues from the previous sugar season, 2022-23, and 99.9% from all other sugar seasons have already been disbursed to farmers.

This has resulted in the lowest level of cane arrears pending in the history of the sugar sector. It is due to timely policy interventions that sugar mills have achieved self-sustainability, eliminating the need for financial assistance from the government since the Sugar Season 2021-22. Nonetheless, the Central Government continues to guarantee the ‘Assured FRP and Assured Procurement’ of sugarcane to farmers, further solidifying its support for the agricultural community.

By approving the historic FRP for sugarcane in the upcoming season, the government reaffirms its commitment to the welfare and prosperity of farmers, thereby driving the growth and sustainability of the agricultural sector in India.

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