In a significant move aimed at bolstering the welfare of farmers across the nation, Prime Minister Narendra Modi announced on Thursday the government’s commitment to fulfilling every resolution related to their welfare. This declaration came in light of the Cabinet Committee on Economic Affairs’ decision to increase the Fair and Remunerative Price (FRP) of sugarcane.
“Our government is dedicated to ensuring the welfare of our farmer brothers and sisters throughout the nation. In this vein, a significant increase in the price of sugarcane has been sanctioned. This move will benefit millions of our sugarcane-producing farmers,” PM Modi shared.
On Wednesday, the Cabinet Committee on Economic Affairs, under the leadership of Prime Minister Modi, approved the Fair and Remunerative Price (FRP) of sugarcane for the Sugar Season 2024-25 at Rs 340 per quintal, with a sugar recovery rate of 10.25 per cent. This decision marks a historic increase, approximately 8 per cent higher than the FRP for the current season (2023-24). The revised FRP is set to come into effect from October 1, 2024.
“The new FRP, which stands at 107 per cent higher than the A2+FL cost of sugarcane, will ensure the prosperity of sugarcane farmers. It is noteworthy that India already pays the highest price for sugarcane globally, and despite this, the government is ensuring the most affordable sugar for domestic consumers in Bharat,” stated a release from the Cabinet Committee on Economic Affairs.
The decision is expected to have far-reaching benefits, impacting over 5 crore sugarcane farmers, including their family members, and hundreds of thousands of others involved in the sugar sector. This move is in line with the Modi government’s commitment to doubling farmers’ income.
Under the approved rates, sugar mills will pay the FRP of sugarcane at Rs 340 per quintal with a recovery rate of 10.25 per cent. Additionally, for every 0.1 per cent increase in recovery, farmers will receive an additional Rs 3.32. Conversely, the same amount will be deducted for a reduction of 0.1 per cent in recovery. However, the minimum price of sugarcane stands at Rs 315.10 per quintal, applicable at a recovery rate of 9.5 per cent. This ensures that even in cases of lower sugar recovery, farmers are assured of the FRP at Rs 315.10 per quintal.
The Cabinet Committee on Economic Affairs highlighted the government’s track record of ensuring farmers receive the rightful price for their crops in a timely manner. As of now, 99.5 per cent of the cane dues for the previous sugar season 2022-23, and 99.9 per cent for all other sugar seasons, have already been paid to farmers. This has resulted in the lowest pending cane arrears in the history of the sugar sector.
Through timely policy interventions, sugar mills have achieved self-sustainability, with no financial assistance provided by the government since 2021-22. Despite this, the Central Government has ensured ‘Assured FRP and Assured Procurement’ of sugarcane for farmers, stated the CCEA.
The FRP has been determined based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and after thorough consultation with state governments and other stakeholders. This move is set to empower sugarcane farmers across the country, bringing relief and prosperity to their livelihoods.
