The government on Wednesday decided to hike the minimum price that mills have to pay to sugarcane growers by Rs 25 to Rs 340 per quintal for the 2024-25 season starting October.
The central government on Wednesday decided to hike by Rs 25 per quintal the minimum price that mills have to pay to sugarcane growers for the 2024-25 season starting October. This is the highest Fair and Remunerative Price (FRP) for sugarcane announced by the Prime Minister Narendra Modi-led government since coming to power in 2014.
The price has been hiked by Rs 25 to Rs 340 per quintal.
In terms of quantum, this is the second time that the Modi government has increased the FRP by Rs 25 per quintal in one go.
The decision to increase the FRP, taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by PM Modi comes ahead of the general elections and amid the farmers' protest.
Sugarcane is grown mainly in Maharashtra, Uttar Pradesh, and Karnataka.
Reacting to the sugarcane FRP hike, Prime Minister Narendra Modi said that the government "is committed to fulfill every resolution related to the welfare of farmer brothers and sisters across the country."
"In this context, a historic increase in the price of sugarcane purchase has been approved. This step will benefit crores of our sugarcane producing farmers," PM Modi said in a post on X.
The CCEA approved the FRP of sugarcane for 2024-25 at Rs 340 per quintal at sugar recovery rate of 10.25 per cent, Information and Broadcasting Minister Anurag Thakur said on Wednesday.
"This is a historic price of sugarcane which is about 8 per cent higher than FRP of sugarcane for current season 2023-24," he added.
The new FRP is 107 per cent higher than A2+FL cost of sugarcane, Thakur said, adding that this would ensure prosperity of sugarcane farmers. India is paying the highest price of sugarcane in the world, he said.
The revised FRP will be applicable with effect from October 1, 2024.
"It re-confirms fulfilment of Modi ki Guarantee to double farmers' income," he added.
The FRP has been determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP).
"This decision of central government is going to benefit more than 5 crore sugarcane farmers (including family members) and lakhs of other persons involved in sugar sector," an official statement said.