The 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 per cent.

This will provide a premium of Rs 2.90/qtl for each 0.1% increase in recovery over and above 10%, and reduction in FRP by Rs 2.90/qtl for every 0.1 per cent decrease in recovery.

Now farmers will get Rs 275.50 per quintal for sugarcane in the 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 per cent is higher by 87.1 per cent over production cost, thereby giving the farmers a return of much more than 50 per cent over their cost.

In the current sugar season 2020-21, about 2,976 lakh tonnes of sugarcane worth Rs 91,000 crore was purchased by sugar mills, which is at an 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, a government statement said.

The FRP approved will be applicable for purchase of sugarcane from the farmers in the sugar season 2021-22 (starting from 1st October, 2021) by sugar mills.

The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crores 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.

Also read: Sugarcane rate issue: Punjab CM approves Rs 35 per quintal hike for FY22 amid farmers' protest

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