Cabinet approves sugarcane FRP of Rs 305/qtl for 2022-23 season

Vibha Sharma

New Delhi, August 3

The Cabinet Committee on Economic Affairs today approved a Fair and Remunerative Price (FRP) of sugarcane for sugar season 2022- 23 (October – September) at Rs 305/qtl for a basic recovery rate of 10.25%, providing a premium of Rs 3.05/qtl for each 0.1% increase in recovery over and above 10.25%, and reduction in FRP by Rs 3.05/qtl for every 0.1% decrease in recovery, according to an official statement.

The FRP for sugar season 2022-23 is 2.6% higher than current sugar season 2021-22, it added

With a view to protect interest of sugarcane farmers, the CCEA headed by Prime Minister Narendra Modi, however, decided that there will not be any deduction in case of sugar mills where recovery is below 9.5%, officials said.

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, they added.

The A2 FL cost of production of sugarcane (actual paid out cost plus imputed value of family labour) for the sugar season 2022-23 is Rs 162/qtl, the officials said, adding that “the 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”.

“Due to proactive policies of the Central Government, sugarcane cultivation and the sugar industry has come a long way in the past 8 years and now has reached a level of self-sustainability.

“This is the outcome of timely government interventions and collaboration with the sugar industry, State Governments, various departments of the Central Government as well as farmers. The decision will benefit 5 crore sugarcane farmers and 5 lakh workers employed in the sugar mills and related ancillary activities,” officials said. 

FRP and SAP

FRP is fixed to ensure a guaranteed price to sugarcane growers which mills are legally bound to pay. State Advised Prices (SAP) announced by key sugarcane-producing states are generally higher than FRP. Key sugar cane-producing states include UP, Maharashtra Punjab, Haryana and Uttarakhand.