Cabinet okays 8% hike in sugarcane price, move to benefit 5 cr farmers
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved an 8 per cent increase in the Fair and Remunerative Price (FRP) of sugarcane to Rs 340 per quintal for the sugar season 2024-25.
The revised prices will be applicable with effect from Oct 1, 2024, according to an official statement issued after the CCEA meeting.
At 107 per cent higher than A2+FL cost of sugarcane, the new FRP will ensure prosperity for the sugarcane farmers.
It is noteworthy that India is already paying the highest price for sugarcane in the world and despite that the government is ensuring the supply of world’s cheapest sugar to the domestic consumers of Bharat, the statement 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 'Modi ki Guarantee' to double farmers’ income,” the statement added.
With this approval, sugar mills will pay FRP of sugarcane at Rs 340/quintal at a recovery of 10.25 per cent. With each increase of recovery by 0.1 per cent, the 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/quintal is the minimum price for sugarcane which is at recovery of 9.5 per cent. Even if sugar recovery is lesser, farmers are assured of an FRP of Rs 315.10/quintal.
