It is great news from the Central government to the Sugarcane farmers. PM Narendra Modi headed Cabinet Committee on Economic Affairs have approved the FRP(Fair and Remunerative Price) of Rs. 290/- per quintal of sugarcane for the basic recovery rate of 10% for the year 2021-22(Oct-Sep). This will be effective from 1st October onwards.
With this approval, 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 will be benefitted directly and indirectly.
As per PIB, “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 worth Rs. 91,000 cr 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. Rs.91,000 crores being paid to sugarcane farmers in 2020-21.
With this, the Indian government sends a strong signal that it is pro-farmers and will encourage domestic manufacturing of sugar.