The government on Wednesday increased sugarcane FRP by Rs 25 to Rs 340 per quintal (100 kg) for the 2024-25 October to September marketing season. FRP is the minimum price the mills have to pay cane growers.

The Rs 25-per-quintal increase (8 per cent hike) in the FRP of sugarcane is significantly higher than what was announced last year, when the government had raised it by Rs 10 per quintal to Rs 315.

The FRP of sugarcane will be Rs 340/quintal for a basic recovery rate of 10.25 per cent. However, there will be a premium of Rs 3.32/quintal for every 0.1 per cent increase in recovery over 10.25 per cent and a reduction of Rs 3.32/quintal in FRP for every 0.1 per cent decrease in recovery.

Some states such as Uttar Pradesh, Haryana and Punjab announce higher rates under State Advised Price (SAP) and, therefore, mills in those states abide by the state’s set rates.

Space FDI

The cabinet has also eased foreign direct investment (FDI) norms in the space sector by allowing 100 per cent overseas investment in making components for satellites.

The satellite sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector, according to an official statement.

At present, FDI in the space sector is allowed up to 100 per cent in the area of satellite establishment and operations through the government route only.

By changing the current policy, the government has allowed up to 74 per cent FDI under the automatic route in satellite-manufacturing and operations, satellite data products, and ground and user segments. Beyond this limit, government approval will be required in these areas.

Up to 49 per cent FDI is allowed through the automatic route for launch vehicles and associated systems or subsystems.