Fair and Remunerative Price for Sugarcane 2022-23


 


Fair and Remunerative Price for Sugarcane 2022-23

The Government of India announced on Wednesday the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2022-23 (October-September). The FRP of sugarcane has been fixed at Rs 305/quintal for a basic recovery rate of 10.25%.

The decision of fixing the sugarcane FRP was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi

Detailing the CCEA decision, an official statement said that FRP of sugarcane for sugar season 2022-23 (October-September) has been fixed at Rs 305/quintal for a basic recovery rate of 10.25%.

Besides, a premium of Rs 3.05/quintal will be provided for each 0.1% increase in recovery over and above 10.25%. However, for every 0.1% decrease in recovery, the FRP will be reduced by Rs 3.05 per quintal



“However, the government with a view to protect interest of sugarcane farmers has also decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs 282.125/qtl for sugarcane in ensuing sugar season 2022-23 in place of Rs 275.50/qtl in current sugar season 2021-22,”

The FRP for sugar season 2022-23 is 5.1% higher than Rs 290 per quintal fixed for the sugar season 2021-22. For the sugar season 2021-22, the government had fixed the FRP at Rs 290 per quintal linked to a basic recovery of 10% subject to a premium of Rs 2.90 per quintal for each 0.1% increase of recovery over and above 10% and reduction in FRP at the same rate for each 0.1% decrease in the recovery rate till 9.5%.

 “The A2 + FL cost of production of sugarcane (i.e actual paid out cost plus imputed value of family labour) for the sugar season 2022-23 is Rs. 162/qtl. This FRP of Rs 305/qtl at a recovery rate of 10.25% is higher by 88.3% over cost of production, thereby ensuring the promise of giving the farmers a return of more than 50% over their cost.”

 

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