Historic hike! Cabinet approves sugarcane FRP hike by Rs 25 to Rs 340 per quintal amid farmers' protest; What does it mean-

Notably, fair and remunerative price (FRP) is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers. Sugarcane is grown mainly in Maharashtra, Uttar Pradesh, and Karnataka. And this Rs 25 per quintal hike is the highest by the Modi government and the move comes ahead of the general elections.

Prime Minister Narendra Modi said on Thursday that the government is committed to fulfilling every resolution related to the welfare of our farmer across the country. "Our government is committed to fulfilling every resolution related to the welfare of our farmer brothers and sisters across the country. In this context, a historic increase in the price of sugarcane has been approved. This step will benefit crores of our sugarcane-producing farmers.," PM Modi posted on X.


"India is paying the highest price for sugarcane in the world and even this year Modi govt has decided to give a hike of 8%. This is in the interest of the farmers, this is our commitment towards farmers' income, at least cost + 50% profit, but here if you look, it is close to 107%, even though the price of fertilizers has increased across the world, we didn't let it affect our farmers, we gave subsidy up to Rs 3 lakh crore, we brought Nano Urea during UPA's 10 years, on wheat, paddy pulses, oilseeds, Rs 5.5 lakh crore was spent during the procurement of MSP, Modi govt spent Rs 18 lakh 39 crore," he said further.

“With this approval, sugar mills will pay FRP of sugarcane @ Rs 340/quintal at recovery of 10.25%. With each increase of recovery by 0.1%, farmers will get the additional price of Rs 3.32 while the same amount will be deducted on a reduction of recovery by 0.1%. However, Rs 315.10/quintal is the minimum price of sugarcane which is at recovery of 9.5%. Even if sugar recovery is lesser, farmers are assured of FRP at Rs 315.10/quintal.", the press statement added.

The decision comes even as a large number of cultivators from Punjab, and Haryana are protesting near the national capital Delhi border demanding a legal guarantee for Minimum Support Price (MSP).

"In the last 10 years, Modi Sarkar has ensured that farmers get the Right Price of their Crops at the Right Time. 99.5% of cane dues of the previous sugar season 2022-23 and 99.9% of all other sugar seasons are already paid to farmers leading to the lowest cane arrears pending in the history of the sugar sector. With timely policy interventions by the Government, sugar mills have become self-sustainable and no financial assistance has been given to them by the Government since SS 2021-22. Still, the Central Government has ensured ‘Assured FRP and Assured Procurement’ of sugarcane to farmers," the statement issued by the government said.