22 February 2024, New Delhi: The central government on Wednesday increased the price of sugarcane by 8 percent for 2024-25, the increased price will be effective from October. This increase has come amid a huge clash between the government and farmers over the minimum support price. The price of sugarcane will now increase from Rs 315 to Rs 340 per quintal. This decision was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
Announcing the increase in Fair and Remunerative Price (FRP) for sugarcane late on Wednesday night in an urgently called press conference, Union Minister Anurag Thakur said that the government is pro-farmer. He said, “Our government is working for the betterment of farmers and agriculture. CCEA has approved the FRP of sugarcane at Rs 340 per quintal at a sugar recovery rate of 10.25 percent for 2024-25. This is the highest ever price of sugarcane, which is about eight percent more than the FRP of sugarcane for the current season 2023-24.”
Highest Price for Sugarcane in the World
The Union Minister said that the new FRP is 107 percent more than the fixed sugarcane formula (A2+FL price) and this will ensure the prosperity of sugarcane farmers. It is noteworthy that India is paying the highest price for sugarcane in the world but despite this, the government is providing the world’s cheapest sugar to the domestic consumers of India. This decision of the Central Government is going to benefit more than 5 crore sugarcane farmers specifically in the state of Uttar Pradesh and Maharashtra where the sugarcane acreage is the highest in the country.
With this approval, sugar mills will pay sugarcane FRP at the rate of ₹ 340/quintal at a recovery of 10.25 percent. With every 0.1 percent increase in recovery, farmers will get an additional price of ₹ 3.32, while the same amount will be deducted for every 0.1 percent decrease in recovery. However, the minimum price of sugarcane is ₹ 315.10/quintal at a recovery of 9.5 percent. Even if sugar recovery is low, farmers are assured of FRP at the rate of ₹315.10/quintal.
