Centre hikes sugar cane fair and remunerative price
Kolhapur: Centre, on Wednesday, increased the fair and remunerative price (FRP) for sugar cane for 2025-26. It is a 26% increase since 2019. However, the minimum support price (MSP) of sugar has remained constant at Rs 31 per kg for the past five years, which is a major cause of concern for sugar millers in Maharashtra, said experts.
The cabinet committee of economic affairs, chaired by Prime Minister Narendra Modi, accepted the recommendation of the commission for agricultural costs and prices to fix the FRP for sugar cane at Rs 3,550 per tonne for a sugar recovery rate of 10.25%. An additional Rs 346 is added for every 1% increase in the sugar recovery rate above the base recovery rate.
The FRP for 2025-26 is Rs 150 per tonne more than what was fixed for the 2024-25 crushing season. Maharashtra has the highest sugar recovery rate in the country, around 11%, and millers will have to pay Rs 3,810 per tonne to farmers. The sugar recovery rate for Kolhapur district is even higher, around 12.5%.
"The FRP fixed is inclusive of the harvesting and transportation cost. Deducting the harvesting and transportation cost, farmers will effectively get Rs 2,900 per tonne since, in the coming year, the harvesting and transportation cost may increase due to rising labour and fuel prices. While govt is making farmers happy, it is not bringing cheer to the faces of sugar millers, who, year after year, demand a hike in the MSP of sugar, which is at Rs 3,100 per quintal. The demand is to increase the MSP to Rs 4,100 per quintal," said Vijay Autade, a sugar industry expert.
Autade said for the 2024-25 crushing season, hundreds of crores of rupees in FRP are due with the sugar millers. "The sugar commissionerate is issuing warning notices to seize sugar and assets to recover the FRP. Now, further increases in FRP will add a burden on them," added Autade.
Raju Shetti, the president of Swabhimani Shetkari Sanghatana, said, "The hike of Rs 150 per tonne is meagre given the prices of sugar hovering above the MSP in the markets, and the millers are benefiting from it. At present, sugar prices in the retail market are Rs 40-44 per kg. In comparison, the hike is very low. Farmers are facing increased expenditure in growing sugar cane. I think the ideal FRP should be Rs 3,800 per tonne."
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