The Centre on Wednesday announced a Rs 10 per quintal hike in sugarcane FRP, which is the minimum price that mills have to pay to sugarcane growers, to Rs 315 per quintal for the 2023-24 season starting October.
The decision to increase the Fair and Remunerative Price (FRP) of sugarcane was taken at the meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.
The FRP of sugarcane has been fixed at Rs 315 per quintal for the 2023-24 season, up 3.28 per cent from current 2022-23 marketing year (October-September).
"The Cabinet has increased the FRP of sugarcane to Rs 315 per quintal for 2023-24. Last year, FRP of sugarcane was Rs 305 per quintal," Information and Broadcasting Minister Anurag Thakur told reporters after the cabinet meeting.
The prime minister has always been with "annadata" and the government has given priority to agriculture and the farmers, he said.
The FRP of sugarcane, which stood at Rs 210 per quintal in 2014-15 season, has now been increased to Rs 315 per quintal for 2023-24 season, Thakur added.
In the current 2022-23 marketing year, about 3,353 lakh tonnes of sugarcane worth Rs 1,11,366 crore has been purchased by sugar mills.
During 2013-14, the mills had procured sugarcane worth Rs 57,104 crore.
Thakur highlighted that under the Modi government, there are no protests from cane farmers over pending dues.
According to an official statement, the CCEA has approved the FRP of sugarcane for 2023-24 marketing year at Rs 315 per quintal for a basic recovery rate of 10.25 per cent.
The CCEA also decided to provide a premium of Rs 3.07 per quintal for each 0.1 per cent increase in recovery over and above 10.25 per cent and reduction in FRP by Rs.3.07 per quintal 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 per quintal for sugarcane in ensuing sugar season 2023-24 in place of Rs 282.125 per quintal in current sugar season 2022-23," the statement said.
The cost of production of sugarcane for the sugar season 2023-24 is Rs 157 per quintal. This FRP of Rs 315 per quintal at a recovery rate of 10.25 per cent is higher by 100.6 per cent over production cost.
The new FRP would be applicable for purchase of sugarcane from the farmers in the sugar season 2023-24 (starting 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 statement said.
The FRP has been determined on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultations with state governments and other stakeholders.
