India

Government hikes sugarcane FRP by Rs 15/quintal for 2022-23 season

The government on Wednesday declared the Fair and Remunerative Price (FRP) of sugarcane for the sugar season 2022-23 (October-September). The FRP of sugarcane has been fixed at Rs 305 per quintal, with the original recovery rate of 10.25 percent.

The decision to fix sugarcane FRP was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

Giving details of the CCEA’s decision, an official statement said that the FRP of sugarcane for the sugar season 2022-23 (October-September) has been fixed at Rs 305 per quintal for the original recovery rate of 10.25 percent.

Besides, a premium of Rs 3.05/quintal will be provided for each 0.1% increase in recovery over and above 10.25%. However, for every 0.1% decrease in recovery, the FRP will be reduced by Rs 3.05 per quintal.

“However, to protect the interest of sugarcane farmers, the government has also decided that there will be no deduction in the case of sugar mills where the recovery is less than 9.5 percent. Such farmers will get Rs 282.125 per quintal for sugarcane in the upcoming sugar season 2022-23 instead of Rs 275.50 per quintal in the current sugar season 2021-22.

The FRP for sugar season 2022-23 is 5.1% higher than Rs 290 per quintal fixed for the sugar season 2021-22. For the sugar season 2021-22, the government had fixed the FRP at Rs 290 per quintal linked to a basic recovery of 10% subject to a premium of Rs 2.90 per quintal for each 0.1% increase of recovery over and above 10% and reduction in FRP at the same rate for each 0.1% decrease in the recovery rate till 9.5%.

The statement said, “A2+FL cost of production of sugarcane for sugar season 2022-23 (i.e. actual paid cost plus estimated value of family labour) is Rs. 162/QTL. This FRP of Rs 305 per quintal at a recovery rate of 10.25% is 88.3% more than the cost of production, ensuring a promise of more than 50% return to the farmers on their cost.

“Due to proactive policies of the central government, sugarcane cultivation and the sugar industry has come a long way in the past 8 years and now reached a level of self-sustainability,” the statement said. “This is the outcome of timely government interventions and collaboration with the sugar industry, state governments, various departments of the central government as well as farmers.”

“This decision will benefit 5 crore sugarcane farmers (sugarcane farmers) and their dependents as well as 5 lakh workers employed in sugar mills and related allied activities,” the statement said.

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