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  • Home
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  • DAILY CURRENT AFFAIRS:Government approves a record FRP of Rs 305 per quintal for Sugarcane

Government approves a record FRP of Rs 305 per quintal for Sugarcane

Tags: Economy/Finance

In a major step to increase the income of the sugarcane farmers the government of India has increased the Fair and Remunerative Price of sugarcane for sugar season 2022-23 (October - September) to Rs 304 per quintal. This is expected to benefit 5 crore sugarcane farmers in the country.

This was decided at the meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by the Prime Minister Narendra Modi on 3 August 2022.

Last year 2021-22 the FRP was Rs 290 per quintal.

FRP for 2022-23 season 

  • The FRP for sugarcane with a recovery of 10.25% of sugar has been fixed at Rs 305 per quintal.
  • The farmers will be paid extra Rs 3.05 per quintal for extra recovery of 0.1% recovery of sugar.
  • However if there is a decrease in the quantity of sugar from the base 10.25 % recovery then the farmers will be paid less at the rate of 3.05 per quintal for every 0.1 % in the recovery of sugar.
  • The government has decided that farmers where the recovery rate of sugar from the sugarcane is less than 9.5% will be paid Rs 285.125 per quintal. 

Who Recommends FRP to the government 

The cane price announced by the Central Government is decided on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) in consultation with the State Governments and after taking feedback from associations of the sugar industry. 

Who buys the sugarcane on FRP 

The sugar mills in the state buy the sugarcane from the farmers at FRP.

Sugar Export from india 

  • India is the largest producer of sugar in the world and second largest exporter of sugar in the world after Brazil.
  • In the current 2021-22 season the government has allowed the export of 10 million tonnes of sugar.
  • Uttar Pradesh, Maharashtra and Karnataka account for nearly 80 percent of the total sugar production in the country. 

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