New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, Wednesday, approved the Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2024-25 at ₹340 per quintal at a sugar recovery rate of 10.25 per cent. This is about 8 per cent higher than the FRP of sugarcane for the current season 2023-24. The revised FRP will be applicable with effect from October 01, 2024.
This decision will benefit more than five crore sugarcane farmers, including family members, and lakhs of other persons involved in the sugar sector, a Government of India note informed.
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With this approval, sugar mills will pay FRP for sugarcane at the rate of ₹340 per quintal at a recovery of 10.25 per cent. With each increase of recovery by 0.1 per cent, farmers will get an additional price of ₹3.32 while the same amount will be deducted on the reduction of recovery by 0.1 per cent. However, ₹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 at the rate of ₹315.10 per quintal.
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“With timely policy interventions by the Government of India, sugar mills have become self-sustainable and no financial assistance has been given to them by the Government since sugar season 2021-22 (October-September). Still, the Central government has ensured ‘Assured FRP and Assured Procurement’ of sugarcane to farmers,” the note further said.
