The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has given its nod to an 8 percent rise in the Fair and Remunerative Price (FRP) of sugarcane, setting it at Rs 340 per quintal for the sugar season of 2024-25. This adjustment will come into effect from October 1, 2024, as per an official statement released following the CCEA meeting.
Significantly higher than the A2+FL cost of sugarcane by 107 percent, the revised FRP aims to bolster the economic well-being of sugarcane farmers.
It's worth noting that India currently pays the highest price globally for sugarcane, yet the government ensures the provision of the world's most affordable sugar to Bharat's domestic consumers, the statement emphasized.
"This decision by the Central government is set to benefit over 5 crore sugarcane farmers (including their family members) and hundreds of thousands of others associated with the sugar industry. It reaffirms the fulfillment of 'Modi ki Guarantee' to double farmers’ income," the statement elaborated.
Following this approval, sugar mills will remunerate sugarcane farmers at Rs 340/quintal at a recovery rate of 10.25 percent. For every increase of 0.1 percent in recovery, farmers will receive an additional Rs 3.32, while an equivalent amount will be deducted for every 0.1 percent reduction in recovery.
However, Rs 315.10/quintal stands as the minimum price for sugarcane at a recovery rate of 9.5 percent. Even if the sugar recovery is lower, farmers are assured of an FRP of Rs 315.10/quintal.
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