Govt hikes fair price of sugarcane to Rs 275

Tribune News Service

New Delhi, July 18

The government on Wednesday increased the minimum price sugar mills pay to cane growers by Rs 20 per quintal to Rs 275 per quintal for the next marketing year starting October.

The decision to increase the Fair and Remunerative Price (FRP) of sugarcane from Rs 255 per quintal to Rs 275 was taken at a meeting of the Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi. The FRP is the minimum price legally guaranteed for sugarcane farmers. “The government has recently taken several steps in the interest of sugarcane growers. Today’s decision to increase the FRP shows the government’s concern towards farmers,” Law Minister Ravi Shankar said.

Food Minister Ram Vilas Paswan said the government had fixed the FRP at Rs 275 per quintal for a recovery rate of 10 per cent for the 2018-19 marketing year. “This is 77.42 per cent higher than the cost of production of sugarcane which is estimated to be Rs 155 per quintal,” he said.

Taking into account the likely sugarcane output in 2018-19, the remittance to the sugarcane farmers will be more than Rs 83,000 crore, he added. The decision is in line with the recommendations of the Commission for Agricultural Costs and Prices. However, farmer leaders called it a “notional figure”, considering that prices are fixed by the states, usually higher than the Centre’s FRP.

Indian Sugar Mills Association (ISMA) Director General Abinsh Verma said, “The 2018-19 sugar production is expected to be around 350-355 lakh tonnes but consumption 255 lakh tonnes. Efforts should be made to export 60 to 70 lakh tonnes of sugar to improve cash flows.”

Unaffordable: ISMA

Mills are unable to pay this year’s FRP and the rate hike for the next year will be more unaffordable unless concrete and focussed steps are taken to help improve ex-mill sugar prices to at least Rs 35 a kg. — Abinsh Verma, ISMA Director General