The government has fixed sugarcane FRP for 2022-23 season at Rs. 15/quintal to Rs. 305 per quintal of curry


New Delhi: The government on Wednesday raised the minimum price to be paid by mills to sugarcane growers for the marketing year 2022-23 starting from October by Rs. 15 to Rs. 305 per quintal has been increased.
This decision will benefit around 5 crore sugarcane farmers and their dependents as well as around 5 lakh workers employed in sugar mills and related ancillary activities.
This Cabinet Committee on Economic AffairsUnder the chairmanship of 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”. An official statement said.
The production price of sugarcane for the 2022-23 marketing year is Rs 162 per quintal.
For every 0.1 percent increase in levy above 10.25 percent Rs. 3.05 per quintal will be given a premium, while for every 0.1 per cent reduction in recovery the FRP will be Rs. 3.05 per quintal will be reduced.
However, no deduction shall be made in case of sugar mills where the recovery is less than 9.5 per cent. Such farmers will get Rs. per quintal for sugarcane in 2022-23. 282.125 is likely to be received which in the current sugar season 2021-22 is Rs. 275.50 per quintal.
“The A2 + FL price of sugarcane production for sugar season 2022-23 (i.e. actual paid cost plus planned value of family labour) is Rs 162 per quintal,” the statement said.
At a levy rate of 10.25 per cent, Rs. 305 per quintal is 88.3 per cent higher than the FRP cost of production, ensuring a promise of more than 50 per cent return to farmers over their cost. The FRP for sugar season 2022-23 is 2.6 percent higher than the current sugar season 2021-22.
“Due to the proactive policies of the central government, sugarcane cultivation and sugar industry have come a long way in the last 8 years and have now reached the level of self-sustainability,” the statement said.
The government has highlighted that it has increased the FRP by over 34 percent in the last eight years. The concept of has also been introduced Minimum selling price (MSP) to reduce ex-mill price of sugar and prevent accumulation of cane arrears. The current MSP is Rs 31 per kg.
The food ministry said sugar mills will be given Rs. Financial assistance of more than 18,000 crores has been provided.
The diversion of surplus sugar for ethanol production improved the financial position of the sugar mills and they are now able to pay sugarcane dues earlier.
“Nine years ago, the FRP was only Rs 210/quintal in sugar season 2013-14 and only 2,397 lakh tonnes of cane was purchased by sugar mills. Farmers were getting only Rs 51,000 crore from the sale of cane to sugar mills.
“However, in the last eight years, the government has increased the FRP by over 34 per cent. In the current sugar season 2021-22, sugar mills procured about 3,530 lakh tonnes of cane worth Rs 1,15,196 crore. An all-time high,” the statement said. was
In the upcoming 2022-23 marketing year, over 3,600 lakh tonnes of cane is likely to be procured by sugar mills worth over Rs 1,20,000 crore.
“In the previous sugar season 2020-21, about Rs 92,938 crore of sugarcane was payable, of which Rs 92,710 crore has been paid and only Rs 228 crore is outstanding,” the ministry said.
In the current year 2021-22 sugarcane Rs. 1,15,196 crore of payables, as on August 1, about Rs. 1,05,322 crore has been paid to farmers.
The government has also highlighted that India has overtaken Brazil in sugar production in the current sugar marketing year. In the last four seasons of 2017-18, 2018-19, 2019-20 and 2020-21, around 6 lakh tonnes, 38 lakh tonnes, 59.60 lakh tonnes and 70 lakh tonnes of sugar have been exported respectively.
“In the current sugar season 2021-22, around 100 lakh tonnes of sugar has been exported till August 1, 2022 and exports are likely to touch 112 lakh tonnes,” the statement said.

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