In a statement, the Cabinet Committee on Economic Affairs (CCEA) said, the move will provide “a premium of Rs 3.05 per quintal for each 0.1% increase in recovery over and above 10.25%”.
New Delhi: Keeping in view the interest of sugarcane farmers, the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the Fair and Remunerative Price (FRP) of sugarcane for the season 2022-23 (October to September) at Rs 305 per quintal for a basic recovery rate of 10.25%.
In a statement, the Cabinet Committee on Economic Affairs (CCEA) said, the move will provide “a premium of Rs 3.05 per quintal for each 0.1% increase in recovery over and above 10.25%, and reduction in FRP by Rs 3.05 per quintal for every 0.1% decrease in recovery”.
The government, with a view to protect the interest of sugarcane farmers, 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 Rs 282.125 per quintal for sugarcane in ensuing sugar season 2022-23 in place of Rs 275.5 per quintal in current sugar season 2021-22,” the statement further said.
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The statement added, “The A2 + FL cost of production of sugarcane (i.e actual paid out cost plus imputed value of family labour) for the sugar season 2022-23 is Rs. 162/qtl. This FRP of Rs. 305/qtl at a recovery rate of 10.25% is higher by 88.3% over cost of production, thereby ensuring the promise of giving the farmers a return of more than 50% over their cost. The FRP for sugar season 2022-23 is 2.6% higher than current sugar season 2021-22.”
Due to positive steps taken by the Centre, sugarcane cultivation and the sugar industry has come a long way in the last eight years and has now reached a level of self-sustainability. “This is an outcome of the timely government interventions and collaboration with the sugar industry, the state governments, various departments of the Centre and the farmers,” the statement said.