New Delhi: About 3,353 lakh tons of sugarcane worth Rs.1,11,366 crore were purchased by sugar mills in the current sugar season 2022-23, which is the second highest next to the procurement of paddy crop at Minimum Support Price.
The Cabinet Committee on Economic Affairs (CCEA) today approved the highest ever fair and remunerative price (FRP) of sugarcane for sugar season 2023-24 (October – September) at Rs.315 per quintal for a basic recovery rate of 10.25%.
It also approved providing a premium of Rs.3.07/quintal for each 0.1% increase in recovery over and above 10.25%, and a reduction in FRP by Rs.3.07/quintal for every 0.1% decrease in recovery.
Further, with a view to protecting the interest of sugarcane farmers, the government also decided that there shall not be any deduction in the case of sugar mills where recovery is below 9.5%. Such farmers will get Rs.291.975/quintal for sugarcane in the ensuing sugar season 2023-24 in place of Rs.282.125/quintal in the current sugar season 2022-23.
The FRP has been determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders. Details of FRP announced by the Government since the sugar season 2013-14 are as under:
The cost of production of sugarcane for the sugar season 2023-24 is Rs.157/quintal. This FRP of Rs.315/quintal at a recovery rate of 10.25% is higher by 100.6% than the production cost. The FRP for sugar season 2023-24 is 3.28% higher than the current sugar season 2022-23.
The FRP approved shall be applicable for the purchase of sugarcane from the farmers in the sugar season 2023-24 (starting with effect from October 1, 2023) by sugar mills.
The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crore sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.
– global bihari bureau