Cabinet approves hike in price of sugarcane payable by sugar factories for 2024-25 season

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved the Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2024-25 at Rs 340 per quintal at sugar recovery rate of 10.25.

This decision is expected to benefit more than 5 crore sugarcane farmers including their families and others involved in the sugar sector. Briefing reporters after a meeting of the union cabinet, Information and Broadcasting Minister Anurag Thakur said this is a historic price of sugarcane which is about 8 per cent higher than FRP of sugarcane for the current season 2023-24. 

The revised FRP will be applicable with effect from October 1, 2024.

"India is already paying the highest price of sugarcane in the world. It is at 107 per cent higher than A2+FL cost of sugarcane," Thakur said, adding that the new FRP will ensure prosperity of sugarcane farmers. 

He said it re-confirms the fulfilment of the Modi government's guarantee to double farmers' incomeAn official release said with the CCEA decision, sugar mills will pay FRP of sugarcane at Rs 340 per quintal at a recovery of 10.25 per cent.

"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. 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," the release said.

"With each increase of recovery by 0.1 per cent, farmers will get an additional price of Rs 3.32 while the same amount will be deducted on reduction of recovery by 0.1 per cent. However, Rs 315.10 per quintal is the minimum price of sugarcane which is at recovery of 9.5 per cent. Even if sugar recovery is lesser, farmers are assured of FRP ar Rs 315.10 per quintal," it added.

The release said that in the last 10 years, the Modi government has ensured that farmers get the right price for their crops at the right time.It said 99.5 per cent of cane dues of the previous sugar season 2022-23 and 99.9 per cent of all other sugar seasons are already paid to farmers leading to the lowest cane arrears pending in the history of the 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 the Government since sugar season 2021-22. Still, the Central Government has ensured 'Assured FRP and Assured Procurement' of sugarcane to farmers," the release said. 

(Except for the headline, this story has not been edited by DNA staff and is published from ANI)