It assured timely payment to farmers, irrespective of the profit and loss to sugar mills. Over 5 crore sugarcane farmers are likely to benefit from it, but the increase in production cost could be passed on to end-consumers
The Cabinet Committee on Economic Affairs on Wednesday hiked the Fair and Remunerative Price (FRP) for sugarcane by 8 percent to Rs340 per quintal for 2024-25, from Rs315 per quintal in 2023-24. As per the revised rates, the sugar mills will pay the latest price to the farmers for a recovery rate of 10.25 percent from October 1.
The sugar mills will pay an additional Rs3.32 for an increase of 0.1 percent in recovery. Similarly, for a 0.1 percent reduction in recovery, the same amount will be deducted. As per the new rate, the minimum price for sugarcane will be Rs315.1 per quintal at a recovery rate of 9.5 percent.