Cabinet approves Fair and Remunerative Price of sugarcane payable by sugar factories for sugar season 2024-25
Fixed FRP of sugarcane at Rs. 340 per quintal for
a basic recovery rate of 10.25%
Provided a premium of Rs. 3.32 per quintal for every 0.1 percentage point
increase above 10.25% in the recovery
Fixed FRP for sugar factories having recovery of 9.5% or less at Rs.315.10 per
qtl
The Cabinet Committee on Economic Affairs chaired by Prime
Minister Narendra Modi approved the Fair and Remunerative Price (FRP) of
sugarcane for Sugar Season 2024-25 at ₹ 340/quintal at sugar recovery rate of
10.25%. This is historic price of sugarcane which is about 8% higher than FRP
of sugarcane for current season 2023-24. The revised FRP will be applicable
w.e.f. 01 Oct 2024.
At 107% higher than A2+FL cost of sugarcane,
the new FRP will ensure prosperity of sugarcane farmers. It is noteworthy that
India is already paying the highest price of sugarcane in the world and despite
that Government is ensuring the world’s cheapest sugar to domestic consumers of
Bharat. This decision of Central Government is going to benefit more than 5
crore sugarcane farmers (including family members) and lakhs of other persons
involved in sugar sector. It re-confirms fulfilment of Modi ki Guarantee to
double farmers’ income.
With this approval, sugar mills will pay FRP
of sugarcane @ ₹ 340/quintal at recovery of 10.25%. With each increase of
recovery by 0.1%, farmers will get additional price of ₹ 3.32 while the same
amount will be deducted on reduction of recovery by 0.1%. However, ₹
315.10/quintal is the minimum price of sugarcane which is at recovery of 9.5%.
Even if sugar recovery is lesser, farmers are assured of FRP @ ₹ 315.10/quintal.
In last 10 years, Modi Sarkar has ensured
that farmers get Right Price of their Crop in Right Time. 99.5% cane dues of
previous sugar season 2022-23 and 99.9% of all other sugar seasons are already
paid to farmers leading to the lowest cane arrears pending in history of sugar
sector. With timely policy interventions by the Government, sugar mills have
become self-sustainable and no financial assistance is being given to them by
Government since SS 2021-22. Still, Central Government has ensured ‘Assured FRP
and Assured Procurement’ of sugarcane to farmers.