About 3,088 lakh tonnes of sugarcane is likely to be purchased by sugar mills
Keeping in view the interest of sugarcane farmers (GannaKisan), the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2021-22 (October – September) at Rs 290 per quintal for a basic recovery rate of 10 per cent, providing a premium of Rs 2.90/quintal for each 0.1 per cent increase in recovery over and above 10 per cent, and reduction in FRP by Rs 2.90/quintal for every 0.1 per cent decrease in recovery.
The government’s proactive approach to protecting the interest of farmers is also seen in the decision of no deduction in the case of sugar mills where recovery is below 9.5 per cent. Such farmers will get Rs 275.50 per quintal for sugarcane in ensuing sugar season 2021-22 in place of Rs 270.75/quintal in current sugar season 2020-21.
The cost of production of sugarcane for the sugar season 2021-22 is Rs 155 per quintal. This FRP of Rs 290 per quintal at a recovery rate of 10 per cent is higher by 87.1 per cent over production cost, thereby giving the farmers a return of much more than 50 per cent over their cost.
Keeping the expected increase in the production of sugarcane in the ensuing sugar season 2021-22, about 3,088 lakh tonnes of sugarcane is likely to be purchased by sugar mills. The total remittance to the sugarcane farmers will be about Rs 1,00,000 crore. The government through its pro-farmer measures will ensure that sugarcane farmers get their dues in time.
The FRP approved shall be applicable for the purchase of sugarcane from the farmers in the sugar season 2021-22 (starting w.e.f. October 1, 2021) by sugar mills.
