Updated February 22nd, 2024 at 12:56 IST

Cabinet approves hike in sugarcane procurement price to Rs 340/quintal for 2024-25

This decision, announced on February 21, comes amid the ongoing farmers' protests in the neighbouring states of the national capital demanding MSP law.

Reported by: Business Desk
Sugarcane procurement price hike 2024-25 | Image:Unsplash
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Sugarcane procurement: The Cabinet Committee on Economic Affairs has approved a hike in the Fair and Remunerative Price (FRP) of sugarcane for the upcoming 2024-25 season. The price has been raised from Rs 315 per quintal to Rs 340 per quintal.

This decision, announced on February 21, comes amid the ongoing farmers' protests in the neighbouring states of the national capital demanding MSP law. The ‘Delhi Chalo’ march, planned by the protesting farmers, is currently being put on hold after a protesting farmer died in clashes with security personnel at the Khanauri border.

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"India is paying the highest price for sugarcane in the world. Even this year, the Modi government has announced a hike of 8 per cent. This is in the interest of farmers," said Union Minister Anurag Thakur.

The revised FRP of Rs 340 per quintal is applicable with effect from October 1, 2024, and is set at a sugar recovery rate of 10.25 per cent. This price increase of 8 per cent from the previous season is expected to benefit more than 5 crore sugarcane farmers and numerous others involved in the sugar sector.

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Furthermore, the Cabinet decision maintains the basic sugar recovery rate at 10.25 per cent, while also adjusting the premium for additional sugar recovery. For the 2024-25 season, the premium for every 0.1 per cent increase in sugar recovery has been raised to Rs 3.32 per quintal, up from Rs 3.07 per quintal in the current season. Similarly, a deduction of the same amount will be made if the recovery rate decreases by 0.1 per cent.

In addition to the sugarcane price hike, the Cabinet also approved various other measures aimed at boosting the agricultural and livestock sectors. These include modifications to the National Livestock Mission, amendments in the Foreign Direct Investment (FDI) policy on the space sector, and the continuation of the Umbrella Scheme for 'Safety of Women'.

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Published February 22nd, 2024 at 10:32 IST