Modi Cabinet Greenlights Historic Fair and Remunerative Price (FRP) for Sugarcane in Sugar Season 2024-25

In a landmark decision, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the Fair and Remunerative Price (FRP) for sugarcane in the upcoming Sugar Season 2024-25. The fixed FRP stands at ₹340 per quintal, with a basic recovery rate set at 10.25%. Additionally, a premium of ₹3.32 per quintal will be provided for every 0.1 percentage point increase above the 10.25% recovery rate.

Furthermore, the Cabinet has stipulated a fixed FRP of ₹315.10 per quintal for sugar factories with a recovery rate of 9.5% or less. This decision marks a significant increase of approximately 8% compared to the FRP of sugarcane in the current season 2023-24. The revised FRP will come into effect from October 1, 2024.

This move, which is 107% higher than the A2+FL cost of sugarcane, is aimed at ensuring the prosperity of sugarcane farmers. Notably, India already pays the highest price for sugarcane globally, while simultaneously ensuring affordable sugar for domestic consumers. The decision is expected to benefit over 5 crore sugarcane farmers and numerous others involved in the sugar sector, aligning with the government’s commitment to doubling farmers’ income.

Under the approved scheme, sugar mills will now pay a minimum FRP of ₹340 per quintal for a recovery rate of 10.25%. For each increase of 0.1% in recovery, farmers will receive an additional ₹3.32, with a corresponding deduction for reductions in recovery. Additionally, the assurance of a minimum FRP of ₹315.10 per quintal remains intact even if the recovery rate falls below 9.5%.

Over the past decade, the Modi government has consistently ensured that farmers receive the right price for their crops in a timely manner. Notably, 99.5% of cane dues from the previous sugar season 2022-23 and 99.9% from all other sugar seasons have already been disbursed to farmers, resulting in historically low cane arrears. With timely policy interventions, sugar mills have achieved self-sustainability, obviating the need for financial assistance from the government since Sugar Season 2021-22. Despite this, the Central Government remains committed to providing “Assured FRP and Assured Procurement” of sugarcane to farmers.