Modi Government Approves Historic Increase in Sugarcane Price for 2024-25 Season

PM Modi’s government has taken a significant step in bolstering the agricultural sector by approving the Fair and Remunerative Price (FRP) of sugarcane for the forthcoming Sugar Season 2024-25. The decision, announced by the Cabinet Committee on Economic Affairs, sets the FRP at Rs 340 per quintal with a sugar recovery rate of 10.25. This move is expected to greatly benefit over 5 crore sugarcane farmers and their families, as well as various stakeholders within the sugar industry.

Anurag Thakur, the Information and Broadcasting Minister, hailed the decision as historic, noting that the revised FRP represents an 8 percent increase compared to the current season. Thakur emphasized India’s position as the world’s highest payer for sugarcane, exceeding the A2+FL cost by 107 percent. This approval reaffirms the Modi government’s unwavering commitment to doubling farmers’ income and ensuring the prosperity of rural communities reliant on agriculture.

The official release accompanying the announcement highlighted that sugar mills will adhere to the approved FRP, ensuring fair compensation for farmers based on the recovery rate. Despite the elevated costs associated with sugarcane production, the government has pledged to maintain affordable sugar prices for domestic consumers.

Additionally, the release outlined a mechanism for price adjustments to safeguard farmers’ interests amidst fluctuating market conditions. It also underscored the government’s successful track record of clearing cane dues from previous seasons, resulting in historically low levels of arrears within the sector.

Moreover, the release emphasized the self-sustainability achieved by sugar mills, with no financial assistance provided by the government since the 2021-22 sugar season. However, the government remains committed to ensuring both assured FRP and procurement of sugarcane for farmers, thereby reinforcing the resilience and stability of the sugar industry.

Overall, the approval of the revised FRP signifies a significant stride towards empowering sugarcane farmers and fortifying the agricultural landscape in line with the government’s overarching vision of inclusive growth and prosperity.