FNB News - Government approves Fair & Remunerative Price of sugarcane for 2021-22

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SUGAR

Government approves Fair & Remunerative Price of sugarcane for 2021-22

Tuesday, 31 August, 2021, 08 : 00 AM [IST]

Our Bureau, New Delhi

Keeping in view interest of sugarcane farmers (GannaKisan), Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved Fair and Remunerative Price (FRP), of sugarcane for sugar season 2021-22 (October - September) at Rs 290 per quintal for a basic recovery rate of 10%, providing premium of Rs 2.90 for each 0.1% increase in recovery over and above 10, and reduction in FRP by Rs 2.90 for every 0.1% decrease in recovery.

Government proactive approach to protect interest of farmers is also seen in the decision of no deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs 275.50 per quintal for sugarcane in ensuing sugar season 2021-22 in place of Rs 270.75/qtl in current sugar season 2020-21.

The cost of production of sugarcane for the sugar season 2021-22 is Rs 155 per quintal. This FRP of Rs 290 per quintal at a recovery rate of 10% is higher by 87.1% over production cost, thereby giving the farmers a return of much more than 50% over their cost.

In the current sugar season 2020-21, about 2,976 lakh tons of sugarcane of worth Rs 91,000 crore was purchased by sugar mills, which is at all time high level and is the second highest next to the procurement of paddy crop at Minimum Support Price.

Keeping the expected increase in the production of sugarcane in the ensuing sugar season 2021-22, about 3,088 lakh tons of sugarcane is likely to be purchased by sugar mills. The total remittance to the sugarcane farmers will be about Rs 1,00,000 crore. Government through its pro-farmer measures will ensure that sugarcane farmers get their dues in time.

The FRP approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2021-22 by sugar mills. The sugar sector is an important agro-based sector that impacts the livelihood of about 5 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.