Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2024-25

News Excerpt:

The Cabinet Committee on Economic Affairs chaired by the Prime Minister approved the Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2024-25 at ₹ 340/quintal at a sugar recovery rate of 10.25%.

 

Fair and Remunerative Price (FRP):

  • It is the minimum price that mills have to pay to sugarcane growers.
  • The sugarcane growers are offered FRP by the government under the Sugarcane (Control) Order of 1966. 
  • The Commission of Agriculture Costs and Prices (CACP) annually formulates recommendations for FRP, encompassing various agricultural commodities, including sugarcane. 
    • The recommendations are evaluated by the government before they are approved.

More details about news:

  • With this approval, sugar mills will pay FRP of sugarcane @ ₹ 340/quintal at recovery of 10.25%. 
  • With each increase of recovery by 0.1%, farmers will get an additional price of ₹ 3.32 while the same amount will be deducted on reduction of recovery by 0.1%. 
    • However, ₹ 315.10/quintal is the minimum price of sugarcane which is at a recovery of 9.5%. 
    • Even if sugar recovery is lesser, farmers are assured of FRP @ ₹ 315.10/quintal.
  • The revised FRP will be applicable w.e.f. 01 Oct 2024.
  • The new FRP is 107 percent higher than the A2+FL (A2 is paid out costs and FL is value of family labour) cost of sugarcane.
  • 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 to domestic consumers of Bharat. 



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