Cabinet Approves Historic Sugarcane Price Hike to ₹340/quintal for 2024-25 Season

GG News Bureau
New Delhi, 22nd Feb. The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, on Wednesday sanctioned a record Fair and Remunerative Price (FRP) of sugarcane at ₹340/quintal for the upcoming Sugar Season 2024-25, effective from October 1, 2024.

This decision marks an unprecedented increase of about 8% compared to the current season’s FRP.

Set at 107% above the A2+FL cost of sugarcane, this enhanced FRP aims to bolster the prosperity of sugarcane farmers. Despite already offering the world’s highest sugarcane prices, the Indian government ensures affordable sugar for domestic consumers.

The move is expected to benefit over 5 crore sugarcane farmers and numerous individuals engaged in the sugar sector, reaffirming the government’s commitment to doubling farmers’ income under the ‘Modi ki Guarantee.’

Under the new approval, sugar mills will pay ₹340/quintal for sugarcane at a recovery rate of 10.25%. Farmers will receive an additional ₹3.32 for every 0.1% increase in recovery, while a deduction of the same amount will be made for every 0.1% reduction.

Additionally, a minimum price of ₹315.10/quintal is assured for sugarcane with a recovery rate of 9.5%.

Over the past decade, the Modi government has consistently ensured farmers receive the rightful price for their crops on time. With 99.5% of cane dues for the previous sugar season 2022-23 already paid, and similar figures for all other seasons, the sector has seen historically low cane arrears.

Through timely policy interventions, sugar mills have achieved self-sustainability, with no financial assistance provided by the government since Sugar Season 2021-22, while ensuring assured FRP and procurement of sugarcane for farmers.