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Friday / April 19. 2024
HomeAgroPolicyCabinet approves FRP of sugarcane payable by sugar factories for sugar season 2024-25

Cabinet approves FRP of sugarcane payable by sugar factories for sugar season 2024-25

Fixed FRP of sugarcane at Rs. 340 per quintal for a basic recovery rate of 10.25% which is about 8 per cent higher than FRP of sugarcane for current season 2023-24.

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2024-25 at Rs 340/quintal at sugar recovery rate of 10.25 per cent. This is historic price of sugarcane which is about 8 per cent higher than FRP of sugarcane for current season 2023-24. The revised FRP will be applicable w.e.f. 01 Oct 2024.

At 107 per cent 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 @ Rs 340/quintal at recovery of 10.25%. With each increase of recovery by 0.1 per cent, farmers will get additional price of Rs 3.32 while the same amount will be deducted on reduction of recovery by 0.1 per cent. However, Rs 315.10/quintal is the minimum price of sugarcane which is at recovery of 9.5 per cent. Even if sugar recovery is lesser, farmers are assured of FRP @ Rs 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 per cent 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.

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