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Cabinet hikes sugarcane prices for 2024-25 by 8%
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a hike in prices for sugarcane
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a hike in prices for sugarcane, known as fair and remunerative price (FRP), payable by millers to cane growers for the fiscal year 2024-25.
The council of ministers cleared an FRP of ₹340 per quintal of sugarcane for the sugar year beginning on October 1, 2024. Unlike in other crops, sugar is a tightly regulated commodity and millers have to statutorily pay the FRP to farmers for cane procured from them.
The new rate, about 8% higher than the FRP of the current financial year, will be applicable for a cane recovery rate of 10.25%. Recovery rate is the amount of sugar derived from crushing a given quantity of cane and varies geographically. “The Modi government has worked continuously for welfare of farmers. Over 99% of cane dues have been cleared by mills to farmers. In 2022-23, total dues of ₹1.14 lakh crore have been paid to farmers,” Union minister Anurag Thakur told reporters.
A premium of ₹3.32 per quintal will also be provided for every 0.1 percentage point increase above 10.25% recovery rate. This simply means additional payment for farmers who provide cane to mills with a more efficient recovery rate.
The council of ministers also cleared a modification of the National Livestock Mission to promote entrepreneurship in horse, donkey, mule and camel rearing with 50% capital subsidy up to ₹50 lakh. The scheme will now also fund entrepreneurs for fodder seed processing infrastructure, such as Processing and grading unit and fodder storage warehouses, with 50% capital subsidy up to ₹50 lakh to the private companies, start-ups and farmers’ societies. States will also be assisted for breed conservation of horse, donkey and camel.
The Cabinet also approved a proposal of the department of water resources for continuation of a central schemes called “Flood Management and Border Areas Programme” with a total outlay of ₹4,100 crore for a period of five years from 2021-22 to 2025-26, which coincides with the 15th Finance Commission period.
