The highest ever fair and remunerative price of Rs 315 per quintal for sugarcane farmers gets Cabinet approval

New Delhi, June 28, 2023

The Cabinet Committee on Economic Affairs (CCEA) today approved the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2023-24 (October - September) at Rs315/Qtl for a basic recovery rate of 10.25%.

It has also been approved to provide a premium of Rs.3.07/QTL for each 0.1% increase in recovery over and above 10.25% and a reduction in FRP by Rs.3.07/Qtl for every 0.1% decrease in recovery.

Further, with a view to protecting the interests of sugarcane farmers, the government has also decided that there would be no deduction in cases of sugar mills where recovery is below 9.5%. Such farmers will get Rs 291.975/Qtl for sugarcane in the sugar season 2023-24 in place of Rs 282.125/Qtl in the current sugar season 2022-23.

The cost of production of sugarcane for the sugar season 2023-24 is Rs157/Qtl. This FRP of Rs 315/Qtl at a recovery rate of 10.25% is higher by 100.6% over the production cost. The FRP for sugar season 2023-24 is 3.28% higher than the current sugar season 2022-23.

The FRP approved shall be applicable for the purchase of sugarcane from the farmers in the sugar season 2023-24 (starting from October 1, 2023) by sugar mills.

The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crore sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.

The FRP has been determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders.


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