Introduction
In a significant move aimed at benefiting sugarcane farmers across the country, the central government has decided to increase the Minimum Support Price (MSP) of sugarcane from Rs 315 to Rs 340 per quintal. This 8% hike in the Sugarcane Fair and Remunerative Price (FRP) comes as a result of key incentives announced by the Centre following a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi.
Key Incentives Announced:
Direct Benefit to Farmers: The decision is expected to benefit more than 5 crore sugarcane farmers and their families, providing them with better remuneration for their produce.
Fixed FRP: Sugar mills will now be obligated to pay a Fair and Remunerative Price (FRP) of sugarcane at Rs 340 per quintal, with a recovery rate set at 10.25%.
Additional Price Incentive: With each increase of recovery by 0.1%, farmers will receive an additional price of Rs 3.32 per quintal. Conversely, the same amount will be deducted on a reduction of recovery by 0.1%.
This move underscores the government’s commitment to bolstering the agricultural sector and ensuring the welfare of farmers, who form the backbone of India’s economy. By enhancing the MSP and introducing measures to incentivize higher recovery rates, the government aims to empower sugarcane
farmers and improve their livelihoods, ultimately contributing to the growth and prosperity of rural India.
According to pib.gov.in(press Release)
The new Fair and Remunerative Price (FRP) for sugarcane, set at 107% higher than the A2+FL cost, is poised to bolster the prosperity of sugarcane farmers. Notably, India already offers the highest price for sugarcane globally, yet the government ensures the most affordable sugar for domestic consumers. This decision by the Central Government will positively impact over 5 crore sugarcane farmers, including their family members, as well as numerous individuals engaged in the sugar sector. It reaffirms the commitment of the Modi administration to doubling farmers’ income and marks a significant step forward in this endeavor.
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