The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2022-23 (October – September) at Rs. 305/qtl for a basic recovery rate of 10.25%, providing a premium of Rs. 3.05/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by Rs. 3.05/qtl for every 0.1% decrease in recovery.
However, the Government with a view to protect the interest of sugarcane farmers has also decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs. 282.125/qtl for sugarcane in ensuing sugar season 2022-23 in place of Rs. 275.50/qtl in current sugar season 2021-22.
The A2 + FL cost of production of sugarcane (i.e actual paid out cost plus imputed value of family labour) for the sugar season 2022-23 is Rs. 162/qtl. This FRP of Rs. 305/qtl at a recovery rate of 10.25% is higher by 88.3% over cost of production, thereby ensuring the promise of giving the farmers a return of more than 50% over their cost. The FRP for sugar season 2022-23 is 2.6% higher than current sugar season 2021-22.
Due to proactive policies of the Central Government, sugarcane cultivation and sugar industry has come a long way in the past 8 years and now reached a level of self-sustainability. 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, claimed PIB.
Decision will benefit 5 crore sugarcane farmers (Ganna Kisan) and their dependents, as well as 5 lakh workers employed in the sugar mills and related ancillary activities. 9 years back, FRP was only Rs. 210/ qtl in sugar season 2013-14 & only about 2397 LMT of sugarcane was purchased by sugar mills.
Farmers were getting only about Rs. 51,000 cr from sale of sugarcane to sugar mills. However, in the past 8 years the Government has increased FRP by more than 34%. In the current sugar season 2021-22, about 3,530 lakh tons of sugarcane worth Rs. 1,15,196 cr was purchased by sugar mills, which is at all-time high.