Government increases Sugarcane FRP to ₹315/quintal for 2023-24 season

Here is Good News waiting for all the Sugarcane farmers! 

The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has approved an increase in the fair and remunerative price (FRP) of sugarcane for the 2023-24 marketing season. The FRP has been raised by ₹10, reaching ₹315 per quintal starting from 1st October 2023. This decision reflects the government’s commitment to supporting farmers and prioritizing agriculture. 

Information and Broadcasting Minister Anurag Thakur, speaking to reporters after the Cabinet meeting, emphasized the Prime Minister’s unwavering support for farmers and the government’s top priority to agriculture and farmers. He highlighted that the FRP for sugarcane has risen significantly from ₹220 per quintal during the 2014-15 season to the current ₹315 per quintal for the 2023-24 season. 

The Commission for Agricultural Costs and Prices (CACP) recommended the FRP based on a basic recovery rate of 10.25%. The price of sugarcane increases with higher recovery rates, which refers to the amount of sugar produced from sugarcane. Additionally, the government has made a decision to eliminate deduction for sugar mills with a recovery rate below 9.5% inorder to protect the interests of sugarcane farmers. Consequently, farmers supplying to such mills will receive ₹291.975 per quintal in the 2023-24 season instead of ₹282.125 per quintal in the current season.  

This decision on the FRP holds significance as it aligns with the upcoming Lok Sabha elections in 2024. The sugar sector is vital for the livelihoods of approximately 5 crore sugarcane farmers, their dependents, and around 5 lakh workers directly employed in sugar mills, as well as those engaged in related activities. 

During the current 2022-23 marketing year, sugar mills have purchased about 3,353 lakh tonnes of sugarcane worth ₹1.11 trillion. Considering the government’s efforts to increase ethanol blending to 15% in the next season, it is crucial to encourage farmers and ensure they do not reduce sugarcane cultivation. 

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