The central government on Wednesday hiked sugarcane Fair and Remunerative Price (FRP) by Rs 25/quintal to Rs 340/quintal for the 2024-25 season.
For the ongoing season, the government hiked sugarcane prices last year in June. The Fair and Remunerative Price (FRP) was increased by Rs 10 per quintal to Rs 315 per quintal for the 2023-24 season, based on a basic recovery rate of 10.25 percent.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the FRP of sugarcane for Sugar Season 2024-25 at Rs 340/quintal at sugar recovery rate of 10.25%. This is historic price of sugarcane which is about 8% higher than FRP of sugarcane for current season 2023-24. The revised FRP will be applicable w.e.f. 01 Oct 2024.
At 107% higher than A2+FL cost of sugarcane, the new FRP will ensure prosperity of sugarcane farmers. It is noteworthy that India is already paying the highest price of sugarcane in the world and despite that Government is ensuring the world’s cheapest sugar to domestic consumers of Bharat. This decision of Central Government is going to benefit more than 5 crore sugarcane farmers (including family members) and lakhs of other persons involved in sugar sector. It re-confirms fulfilment of Modi ki Guarantee to double farmers’ income.
With this approval, sugar mills will pay FRP of sugarcane @ ₹ 340/quintal at recovery of 10.25%. With each increase of recovery by 0.1%, farmers will get additional price of ₹ 3.32 while the same amount will be deducted on reduction of recovery by 0.1%. However, ₹ 315.10/quintal is the minimum price of sugarcane which is at recovery of 9.5%. Even if sugar recovery is lesser, farmers are assured of FRP @ ₹ 315.10/quintal.
In last 10 years, Modi Sarkar has ensured that farmers get Right Price of their Crop in Right Time. 99.5% cane dues of previous sugar season 2022-23 and 99.9% of all other sugar seasons are already paid to farmers leading to the lowest cane arrears pending in history of sugar sector. With timely policy interventions by the Government, sugar mills have become self-sustainable and no financial assistance is being given to them by Government since SS 2021-22. Still, Central Government has ensured ‘Assured FRP and Assured Procurement’ of sugarcane to farmers.
(Source: PIB)
