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In a significant move, the Cabinet Committee on Economic Affairs, led by PM Modi, sanctioned a notable increase in the Fair and Remunerative Price (FRP) of sugarcane for the upcoming Sugar Season 2024-25. Prime Minister Modi expressed the government’s unwavering commitment to the welfare of farmers across the nation.
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Historic FRP Hike to Benefit Millions
PM Modi emphasized the historical significance of the decision, stating, “Our government is committed to fulfilling every resolution related to the welfare of our farmer brothers and sisters across the country. In this context, a historic increase in the price of sugarcane has been approved. This step will benefit crores of our sugarcane-producing farmers.”
Key Details of the FRP Increase
The revised FRP for sugarcane, set at Rs 340 per quintal with a sugar recovery rate of 10.25 per cent, marks an 8 per cent surge compared to the current season’s FRP. This decision will come into effect from October 1, 2024, providing a boost to the prosperity of sugarcane farmers.
Ensuring Prosperity and Affordable Sugar
The Cabinet Committee on Economic Affairs release highlighted, “At 107 per cent higher than the A2+FL cost of sugarcane, the new FRP will ensure the prosperity of sugarcane farmers. It is noteworthy that India is already paying the highest price of sugarcane in the world and despite that, the government is ensuring the world’s cheapest sugar for domestic consumers in Bharat.”
“This decision of the Central Government is going to benefit more than 5 crore sugarcane farmers (including family members) and lakhs of other persons involved in the sugar sector. It re-confirms the fulfilment of the Modi ki Guarantee to double farmers’ income,” the release said.
Flexible Pricing Mechanism
The approval sets the FRP at Rs 340 per quintal for a recovery rate of 10.25 per cent. Additionally, farmers will receive an additional price of Rs 3.32 for each 0.1 per cent increase in recovery, with corresponding deductions for reductions. The minimum price of sugarcane, even at a recovery rate of 9.5 per cent, is set at Rs 315.10 per quintal.
Government’s Track Record in Farmer Support
The Cabinet Committee on Economic Affairs highlighted the government’s efforts over the last decade, ensuring farmers receive fair prices for their crops on time. Nearly all outstanding cane dues from the previous sugar season have been settled, reflecting the lowest cane arrears in the history of the sugar sector.
Self-Sustainability of Sugar Mills
Notably, sugar mills have become self-sustainable with no financial assistance from the government since 2021-22. Despite this, the Central Government continues to ensure ‘Assured FRP and Assured Procurement’ of sugarcane for farmers, according to the CCEA.
Transparent Decision-Making Process
The FRP determination was based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and involved consultations with state governments and other stakeholders, ensuring a transparent and inclusive decision-making process.
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