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HomePosts Tagged "Cabinet Committee on Economic Affairs"
AgroPolicy, Finance, India, Schemes - Govt, Sugar industry

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.

Fixed FRP of sugarcane at Rs. 340

AgroPolicy, Finance, Foodgrains, India, Oilseeds, Pulses

The absolute highest increase in MSP has been approved for lentil (masur) at Rs 425 per quintal followed by rapeseed & mustard at Rs 200 per quintal.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the increase in the Minimum Support Prices (MSP) for all mandated Rabi Crops for Marketing Season 2024-25.

Government has increased the MSP of Rabi Crops for Marketing Season 2024-25, to ensure remunerative prices to the growers for their produce. The absolute highest increase in MSP has been approved for lentil (masur) at Rs.425 per quintal followed by rapeseed & mustard at Rs.200 per quintal. For wheat and safflower, an increase of Rs.150 per quintal each has been approved. For barley and gram an increase of Rs.115 per quintal and Rs.105 per quintal respectively, has been approved.

The increase in MSP for mandated Rabi Crops for Marketing Season 2024-25 is in line with the Union Budget 2018-19 announcement of fixing the MSP at a level of at least 1.5 times of the All-India weighted average Cost of Production.  The expected margin over All-India weighted average Cost of Production is 102 percent for wheat, followed by 98 percent for rapeseed & mustard; 89 per cent for lentil; 60 per cent for gram; 60 percent for barley; and 52 percent for safflower. This increased MSP of rabi crops will ensure remunerative prices to the farmers and incentivise crop diversification.

The Government is promoting crop diversification towards oilseeds, pulses and shree anna/millets to enhance food security, increase farmers’ income, and reduce dependence on imports. Besides the Price Policy, the Government has undertaken various initiatives such as the National Food Security Mission (NFSM), Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), and the National Mission on Oilseeds and Oil Palm (NMOOP) with the objective to provide financial support, quality seeds to encourage farmers to cultivate oilseeds and pulses.

Moreover, to extend the benefits of the Kisan Credit Card (KCC) Scheme to every farmer across the nation, Government has launched the Kisan Rin Portal (KRP), KCC Ghar Ghar Abhiyaan, and Weather Information Network Data Systems (WINDS) with the aim to provide timely and accurate weather information to empower farmers in making timely decisions regarding their crops. These initiatives aim to revolutionize agriculture, enhance financial inclusion, optimize data utilization, and improve the lives of farmers across the nation.

The absolute highest increase in MSP has

AgroPolicy, Finance, India, Sugar industry

The latest FRP of Rs.315/qtl at a recovery rate of 10.25 per cent is higher by 100.6 per cent over production cost.

Keeping in view interest of sugarcane farmers (GannaKisan), the Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2023-24 (October – September) at Rs.315/qtl for a basic recovery rate of 10.25 per cent. It has also been approved to provide a premium of Rs.3.07/qtl for each 0.1 per cent increase in recovery over and above 10.25 per cent, & reduction in FRP by Rs.3.07/qtl for every 0.1 per cent decrease in recovery.

Further, with a view to protect interest of sugarcane farmers, government has also decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5 per cent. Such farmers will get Rs.291.975/qtl for sugarcane in ensuing sugar season 2023-24 in place of Rs.282.125/qtl in current sugar season 2022-23.

The cost of production of sugarcane for the sugar season 2023-24 is Rs.157/qtl. This FRP of Rs.315/qtl at a recovery rate of 10.25 per cent is higher by 100.6 per cent over production cost. The FRP for sugar season 2023-24 is 3.28 per cent higher than current sugar season 2022-23.

          The FRP approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2023-24 (starting w.e.f. 1st October, 2023) by sugar mills. The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crore sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.

          The FRP has been determined on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stake-holders.

In the current sugar season 2022-23, about 3,353 lakh tons of sugarcane of worth Rs.1,11,366 crore purchased by sugar mills, which is the second highest next to the procurement of paddy crop at Minimum Support Price. The Government through its pro-farmer measures will ensure that sugarcane farmers get their dues in time.

     Growth of ethanol as biofuel sector in last 5 years has amply supported the sugarcane farmers and sugar sector, as diversion of sugarcane/sugar to ethanol has led to better financial positions of sugar mills due to faster payments, reduced working capital requirements and reduced blockage of funds due to less surplus sugar with mills, thereby enabling them to make timely payment of cane dues of farmers. During 2021-22, revenue of about Rs.20,500 crore has been generated by sugar mills/distilleries from sale of ethanol to OMCs which has enabled them to clear cane dues of farmers.

The latest FRP of Rs.315/qtl at a