Highest ever! Govt nod to fair and remunerative price of Rs 290 per quintal on sugarcane for 2021-22
New Delhi, Aug 25: Keeping in view interest of sugarcane farmers (GannaKisan), the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2021-22 (October - September) at Rs. 290/- per quintal for a basic recovery rate of 10%, providing a premium of Rs. 2.90/qtl for each 0.1% increase in recovery over and above 10%, & reduction in FRP by Rs. 2.90/qtl for every 0.1% decrease in recovery.
The Government's proactive approach to protect interest of farmers is also seen in the decision of no deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs. 275.50 per quintal for sugarcane in ensuing sugar season 2021-22 in place of Rs. 270.75/qtl in current sugar season 2020-21.
The cost of production of sugarcane for the sugar season 2021-22 is Rs. 155 per quintal. This FRP of Rs. 290 per quintal at a recovery rate of 10% is higher by 87.1% over production cost, thereby giving the farmers a return of much more than 50% over their cost.
In the current sugar season 2020-21, about 2,976 lakh tons of sugarcane of worth Rs. 91,000 cr was purchased by sugar mills, which is at all time high level & 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.
The FRP approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2021-22 (starting w.e.f. 1st October, 2021) by sugar mills. The sugar sector is an important agro-based sector that impacts the livelihood of about 5 sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.
Here are the Highlights
•
Highest
ever
Fair
and
Remunerative
Price
of
290
Rs/qtl
approved
for
Sugarcane
Farmers
(GannaKisan)
•
Decision
will
benefit
the
5
crore
sugarcane
farmers
(GannaKisan)
and
their
dependents,
as
well
as
the
5
lakh
workers
employed
in
the
sugar
mills
and
related
ancillary
activities.
•
The
cost
of
production
of
sugarcane
for
the
sugar
season
2021-22
is
Rs.
155
per
quintal.
This
FRP
of
Rs.
290
per
quintal
at
a
recovery
rate
of
10%
is
higher
by
87.1%
over
production
cost,
thereby
giving
the
farmers
a
return
of
much
more
than
50%
over
their
cost.
•
In
the
current
sugar
season
2020-21,
about
2,976
lakh
tons
of
sugarcane
of
worth
Rs.
91,000
cr
was
purchased
by
sugar
mills,
which
is
at
all
time
high
level
&
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.
•
Cabinet
approvesFDI
proposal
of
M/s
Anchorage
Infrastructure
Investment
Holding
Ltd,
proposing
an
investment
of
Rs.15000
crore
in
India
•
The
investment
will
be
a
major
boost
to
the
infrastructure
and
construction
sector
and
also
to
the
Airport
sector
•
A
significant
boost
to
the
recently
announced
National
Monetisation
Pipeline
(NMP),
as
it
will
help
fund
leasing
out
of
state-owned
infrastructure
assets
which
involves
handling
assets