The government has increased the Fair and Remunerative Price of sugarcane to ₹365 per quintal for 2024, benefiting around 10 million farmers and addressing rising input costs. The new FRP is 10% higher than last year.
By Robin Kumar Attri
Union Minister Ashwini Vaishnaw announced the new FRP after a recent meeting. The new rate of ₹365 per quintal applies at a basic recovery rate of 10.25%. Compared to last season's ₹355 per quintal, this is a 2.81% increase. The government estimates the production cost of sugarcane at ₹182 per quintal. The new FRP is about 100.5% higher than this cost.
If a sugar mill achieves a recovery rate above 10.25%, farmers will receive an extra ₹3.56 per quintal for every 0.1% increase. In regions with recovery rates below 9.5%, farmers will still get ₹338.30 per quintal. The FRP is the minimum price sugar mills must pay to farmers. The government reviews and sets this price each year, considering costs and market conditions.
This FRP increase will benefit nearly 10 million farmers who depend on sugarcane for their livelihood. The higher price aims to ease the burden of rising input costs, such as fertilizer, seeds, labor, and diesel. Experts believe this move will increase farmers' income and boost the rural economy. With more money, farmers can invest in new technologies and better equipment for their fields.
The government also expects that surplus sugarcane will be used for ethanol production. This can provide an additional revenue stream for farmers and support the country's energy goals.
The government sets the FRP each year to ensure fair compensation for farmers. This policy supports the cultivation of cash crops like sugarcane. The increase in FRP reflects the government's focus on strengthening the agricultural sector. The policy also aims to encourage the use of modern farming methods and improve overall productivity.
Farmers rely on accurate information for making decisions about crops and investments. Updates on government policies, machinery comparisons, and scheme details help them maximize returns from their efforts.
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