"This step will benefit crores of farmers": PM Modi after CCEA decides to increase sugarcane FRP

"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.," PM Modi posted on X.

Earlier on Wednesday, 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 Rs 340 per quintal at a sugar recovery rate of 10.25 per cent. This was the historic price of sugarcane, which is about 8 per cent higher than the FRP of sugarcane for the current season (2023-24). The revised FRP will be applicable from October 1, 2024.

"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," a Cabinet Committee on Economic Affairs release said.

"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.

With this approval, sugar mills will pay FRP of sugarcane at Rs 340 per quintal at recovery of 10.25 per cent. With each increase of recovery by 0.1 per cent, farmers will get the additional price of Rs 3.32 while the same amount will be deducted on the 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 at Rs 315.10 per quintal.

According to the Cabinet Committee on Economic Affairs, In the last 10 years, the Government has ensured that farmers get the right price of their crops at the right time. 99.5 per cent of the 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 has been given to them by the government since 2021-22. Still, the Central Government has ensured 'Assured FRP and Assured Procurement' of sugarcane to farmers, the CCEA said.

The FRP has been determined based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with state governments and other stakeholders. (ANI)