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Govt increases sugarcane FRP by Rs 15 to Rs 305 per quintal for 2022-23 season

04 Aug 2022 Evaluate

The government has increased the minimum price that mills have to pay to sugarcane growers by Rs 15 to Rs 305 per quintal for the 2022-23 marketing year starting October. The decision will benefit around 5 crore sugarcane farmers and their dependents, as well as about 5 lakh workers employed in sugar mills and related ancillary activities. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the Fair and Remunerative Price (FRP) of sugarcane for the 2022-23 sugar marketing year (October - September) at Rs 305 per quintal for a basic recovery rate of 10.25 per cent.

The cost of production of sugarcane for the 2022-23 marketing year is Rs 162 per quintal. A premium of Rs 3.05 per quintal will be provided for each 0.1 per cent increase in recovery over and above 10.25 per cent, while there will be a reduction in FRP by Rs 3.05 per quintal for every 0.1 per cent decrease in recovery. However, there would not be any deduction in the case of sugar mills where recovery is below 9.5 per cent. Such farmers are likely to get Rs 282.125 per quintal for sugarcane in 2022-23 as against Rs 275.50 per quintal in the current sugar season 2021-22

In the current 2021-22, out of cane dues payable of Rs 1,15,196 crore, about Rs 1,05,322 crore have been paid to farmers, as of August 1. In the next 2022-23 marketing year, more than 3,600 lakh tons of sugarcane are likely to be purchased by sugar mills worth more than Rs 1,20,000 crore. About 100 lakh tonnes of sugar has been exported till August 1, 2022, in the current sugar season 2021-22 and exports likely to touch 112 lakh tonnes.

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