Cabinet approves ‘Fair and Remunerative Price’ (FRP) of sugarcane payable by sugar factories for sugar season 2024-25 (October-September) Fixed FRP of sugarcane at ₹340 per quintal has been decided for a basic recovery rate of 10.25%

Cabinet approves ‘Fair and Remunerative Price’ (FRP) of sugarcane payable by sugar factories for sugar season 2024-25 (October-September)

Fixed FRP of sugarcane at ₹340 per quintal has been decided for a basic recovery rate of 10.25% #CabinetDecisions #Sugarcane #FRP pic.twitter.com/okBVPq4fsg— Agriculture INDIA (@AgriGoI) February 22, 2024

The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, approved on Wednesday to raise the fair and remunerative price (FRP) for sugarcane to ₹340 per quintal for the 2024-25 marketing season. This decision came amidst clashes between protesting farmers en route to Delhi and the police at the Punjab-Haryana border.

The procurement price of sugarcane is approximately 8% higher than the FRP for the 2023-24 season, which is ₹315 per quintal. It is estimated that this decision will benefit over 5 crore sugarcane farmers and their families.

Sugar mills are required to pay a Fair and Remunerative Price (FRP) of ₹340 for every quintal of sugarcane, taking into account a sugar recovery rate of 10.25%. Farmers will receive an additional ₹3.32 per quintal for every 0.1% increase in recovery, while the same amount will be deducted if recovery decreases by 0.1%, according to Union Minister for Information and Broadcasting Anurag Thakur following the Cabinet meeting.

The minimum price for sugarcane is ₹315.10 per quintal, with a recovery rate of 9.5%. Farmers can expect an FRP of ₹315.10 per quintal, even with lower sugar recovery.

Ensuring a guaranteed price to Sugarcane growers!

The Government of India is committed to improving the economic condition of farmers. Highest ever #FRP of ₹340/qtl approved for Sugarcane #Farmers.#CabinetDecisions #Sugarcane #EmpoweringAnndatas #FarmersFirst pic.twitter.com/PjgIqpuaqP— Agriculture INDIA (@AgriGoI) February 22, 2024

The decision on sugarcane procurement price comes ahead of the Lok Sabha elections and amid protests by Punjab farmers seeking a legal guarantee to the minimum support price mechanism and full debt waiver, among other things. The sugar sector is an important agro-based sector that affects the livelihoods of approximately 5 crore sugarcane farmers and their dependents, as well as approximately 5 lakh workers directly employed in sugar mills, in addition to those employed in ancillary activities such as farm labour and transportation.

(Inputs from agencies)

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