The Cabinet Committee on Economic Affairs, at its meeting chaired by Prime Minister Narendra Modi here on Wednesday, has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2022-23 (October - September) at ₹305 per quintal. The amount is for sugarcane with a basic sugar recovery rate of 10.25%. The Centre has also announced a premium of ₹3.05 per quintal for each 0.1% increase in recovery of sugar over and above 10.25% and reduction in FRP by ₹3.05 per quintal for every 0.1% decrease in recovery.
The FRP for last season was ₹290 per quintal with a basic recovery rate of 10%. While the Centre claimed the increase will protect the interest of sugarcane farmers, the farmers’ organisations said the FRP is too low when compared to the increase in input cost and the increase of 0.25% in recovery rate is a blow to them. The Centre 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 ₹282.125 per quintal for sugarcane in ensuing sugar season 2022-23 in place of ₹275.50 per quintal in current sugar season 2021-22,” a government release said.
