New Delhi: The Centre on Wednesday increased the Minimum Support Price (MSP) for the sugarcane crop by eight percent (8%) following prolonged protests by the farmers.
The announcement by the Centre came on a day the farmers protest saw the death of one protestor. According to sources, he was shot by the Haryana Police.
The effective hike in the MSP was stated to be at Rs 340 per quintal by officials. In a statement, the Consumer Affairs, Food and Public Distribution ministry said, “The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi approved the Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2024-25 at Rs 340/quintal at a sugar recovery rate of 10.25 percent.”
It added, “At 107 percent higher than A2+FL cost of sugarcane, the new FRP will ensure prosperity of sugarcane farmers. It is noteworthy that India is already paying the highest price of sugarcane in the world and despite that Government is ensuring the world’s cheapest sugar to domestic consumers of India. This decision of Central Government is going to benefit more than 5 crore sugarcane farmers (including family members) and lakhs of other persons involved in sugar sector. It re-confirms fulfilment of Modi ki Guarantee to double farmers’ income.”
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It further clarified, “With this approval, sugar mills will pay FRP of sugarcane at Rs 340/quintal at recovery of 10.25 percent. With each increase of recovery by 0.1 percent, farmers will get additional price of Rs 3.32 while the same amount will be deducted on reduction of recovery by 0.1%. However, Rs 315.10/quintal is the minimum price of sugarcane which is at recovery of 9.5 percent. Even if sugar recovery is lesser, farmers are assured of FRP at Rs 315.10/quintal.”
