The Cabinet Committee on Economic Affairs on Wednesday announced a Rs 10 per quintal hike in sugarcane Fair and Remunerative Price (FRP), which is the minimum price that mills have to pay to sugarcane growers, to Rs 315 per quintal for the 2023-24 season starting October.
"The Cabinet has increased the FRP of sugarcane to Rs 315 per quintal for 2023-24. Last year, FRP of sugarcane was Rs 305 per quintal," Information and Broadcasting Minister Anurag Thakur told reporters after the cabinet meeting.
The government has approved the FRP of sugarcane for 2023-24 marketing year at Rs 315 per quintal for a basic recovery rate of 10.25 per cent. The CCEA also decided to provide a premium of Rs 3.07 per quintal for each 0.1 per cent increase in recovery over and above 10.25 per cent and reduction in FRP by Rs.3.07 per quintal for every 0.1 per cent decrease in recovery, said a statement.
The new FRP would be applicable for purchase of sugarcane from the farmers in the sugar season 2023-24 (starting October, 2023) by sugar mills.
The FRP of sugarcane, which stood at Rs 210 per quintal in 2014-15 season, has now been increased to Rs 315 per quintal for 2023-24 season, Thakur added.
In the current 2022-23 marketing year, about 3,353 lakh tonnes of sugarcane worth Rs 1,11,366 crore has been purchased by sugar mills. During 2013-14, the mills had procured sugarcane worth Rs 57,104 crore.