Sugarcane FRP hike: The Narendra Modi government on Wednesday decided to hike Fair and Remunerative Price (FRP) on sugarcane. The decision to approve highest ever FRP on sugarcane of Rs 269 per quintal was taken during a Cabinet meeting.
The move is likely to benefit nearly 5 crore sugarcane farmers and their dependents, Union Minister Piyush Goyal said during a press briefing.
The decision to hike to sugarcane FRP is being seen as a step to woo the farmers in Uttar Pradesh and Punjab where assembly elections are due next year.
In the current sugar season 2020-21, about 2,976 lakh tons of sugarcane of worth Rs 91,000 crore was purchased by sugar mills, which is at all time high level and is the second highest next to the procurement of paddy crop at Minimum Support Price. Keeping the expected increase in the production of sugarcane in the ensuing sugar season 2021-22, about 3,088 lakh tons of sugarcane is likely to be purchased by sugar mills.
The total remittance to the sugarcane farmers will be about Rs 1,00,000 crore. The Government through its pro-farmer measures will ensure that sugarcane farmers get their dues in time, a statement said.
The FRP approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2021-22 (starting October 1, 2021) by sugar mills.