New Delhi: In a significant move, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has given its nod to the Fair and Remunerative Price (FRP) of sugarcane for the Sugar Season 2024-25. The approved FRP stands at ₹340 per quintal, considering a sugar recovery rate of 10.25%. This decision marks a historic price for sugarcane, representing an approximately 8% increase compared to the current season’s FRP. The revised FRP will come into effect from October 1, 2024.
This move, ensuring a price that is 107% higher than the A2+FL cost of sugarcane, is aimed at fostering prosperity among sugarcane farmers. Notably, India already pays the highest sugarcane prices globally, and despite this, the government remains committed to providing the most affordable sugar to domestic consumers. The decision is expected to benefit over 5 crore sugarcane farmers, including their family members, and numerous individuals involved in the sugar sector. It reaffirms the government’s commitment to fulfilling the promise of doubling farmers’ income under the Modi ki Guarantee.
Under the approved FRP, sugar mills will be required to pay ₹340 per quintal of sugarcane at a recovery rate of 10.25%. Additionally, for every 0.1% increase in recovery, farmers will receive an extra ₹3.32, while a similar amount will be deducted for a reduction of 0.1% in recovery. However, even if the sugar recovery is lower, farmers are guaranteed a minimum price of ₹315.10 per quintal at a recovery rate of 9.5%.
Over the past decade, the Modi government has consistently ensured that farmers receive the right price for their crops at the right time. With 99.5% of cane dues for the previous sugar season (2022-23) and 99.9% for all other sugar seasons already paid to farmers, this has led to the lowest pending cane arrears in the history of the sugar sector. The government’s timely policy interventions have rendered sugar mills self-sustainable, with no financial assistance provided by the government since the Sugar Season 2021-22. Yet, the Central Government remains committed to assuring both the FRP and procurement of sugarcane for farmers.
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