Farmers seek increase in FRP for sugarcane
State Sugarcane Cultivators' Association has sought an increase in Fair and Remunerative Price (FRP) for sugarcane for the current season 2025-26.
A delegation of farmers, led by Atahalli Devaraj, secertary of the association, met the authorities in Bengaluru on Wednesday and submitted their demands.
Mr. Devaraj told reporters here on Thursday that FRP for sugarcane has been increased by only ₹150 a tonne, which, he said, is unscientific. A review must be conducted, and the price should be fixed at ₹4,500 a tonne as per the CACP (Commission for Agricultural Costs and Prices) report, he added.
The association members also reiterated their long-pending demand of fair share of profits accrued from sugarcane by-products, by the sugar mills. In a memorandum submitted to the authorities, the association said the government has fixed an additional price of ₹150 a tonne for sugarcane by-products. But the sugar mills were yet to pay the amount due for the previous year (2024-25), and steps should be taken to ensure that the amount was released to the farmers immediately, Mr. Devaraj said.
The association claimed that there was an outstanding amount of ₹950 crore payable to the sugarcane farmers.
On the issue of computing the rates, the farmers said that FRP should be the price at the field and pointed out that sugar mills tend to recover transportation charges from field to factories. This, Mr. Devaraj said, should be stopped.
The association pointed out that sugar factories deduct 25% of payment for sugarcane crop that was burnt due to fire and wanted the government to step in and end this practice.
Seeking transparency in weighing, the farmers have sought the installation of weighing machine in front of sugar mills. Besides, there is an 8% deduction by way of wastage during harvesting and this should also be stopped, according to the association.
The delegation, which met senior officials of the Directorate of Sugarcane Development and Sugar, also discussed other issues faced by farmers and urged the authorities to address their demands.
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Mint
5 days ago
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Sugar industry seeks ethanol price revision as blending share drops to 28 pc
New Delhi, The sugar industry has demanded a revision of ethanol procurement prices and extension of blending targets beyond 20 per cent, as the sector's contribution to the national ethanol programme has declined sharply from 73 per cent to just 28 per cent. The industry has also demanded accelerated promotion and manufacturing of Flex-Fuel Vehicles to boost ethanol demand and ensure market preparedness for higher blending, National Federation of Cooperative Sugar Factories said in a statement. The demand was made by the industry delegation, led by Ravi Gupta, Chairman of IFGE's Sugar Bioenergy Group, and expert Member on the Board of NFCSF, in a meeting held at the PMO recently, it said. In 2022-23 season , NFCSF said the sugar industry reached a significant milestone by diverting 43 lakh tonnes of sugar towards ethanol production, enabling the supply of 369 crore litres of ethanol, which accounted for 73 per cent of total ethanol blended with fuel across the country. However, in 2023-24, ethanol supply from sugar-based feedstocks declined to 270 crore litres, contributing only 38 per cent to the national blending programme. "This is projected to fall further to 250 crore litres in 2024-25, making up just 28 per cent of the total blending target of 900 crore litres," it said in a statement. The main reason for this drop is that ethanol procurement prices have not been increased in line with the rise in the Fair and Remunerative Price of sugarcane, making ethanol production less profitable for sugar mills. Although there is potential to divert up to 40 lakh tonnes of sugar into ethanol this year, only 32 lakh tonnes are expected to be diverted. "This shortfall is due to the gap between ethanol prices and better returns from selling sugar directly in the domestic market," NFCSF said. As a result, India's ethanol production capacity of 952 crore litres per year including 130 crore litres from multi-feed distilleries is being under-utilised. The Ethanol Blending Programme has emerged as a vital solution to the longstanding issue of surplus sugar stocks under the National Policy on Biofuels – 2018, which set an ambitious target to divert 60 to 70 lakh tonnes of excess sugar annually towards ethanol production. Since the policy's inception, India's ethanol production capacity has expanded significantly from 518 crore litres in 2018 to 1,800 crore litres in 2025. Correspondingly, the ethanol blending rate with petrol has risen sharply from 4.22 per cent to 18.61 per cent as of April 30, 2025. Sugar production has reached 286.9 lakh tonnes as on April 30 of the ongoing 2024-25 season, out of which 30 lakh tonnes have been diverted for ethanol. The industry has additionally suggested evaluating the possibility of blending ethanol in diesel as a future strategy to expand ethanol use across fuel types. NFCSF noted that diverting sugar to ethanol does not reduce the actual production of sugar but helps to manage surplus sugar stocks, stabilise market prices, improve the financial health of sugar mills, and ensure timely payments to farmers. This article was generated from an automated news agency feed without modifications to text.
Time of India
5 days ago
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Sugar industry seeks ethanol price revision as blending share drops to 28% from 73%
The sugar industry has demanded a revision of ethanol procurement prices and extension of blending targets beyond 20%, as the sector's contribution to the national ethanol programme has declined sharply from 73% to just 28%. The industry has also demanded accelerated promotion and manufacturing of Flex-Fuel Vehicles (FFVs) to boost ethanol demand and ensure market preparedness for higher blending, National Federation of Cooperative Sugar Factories (NFCSF) said in a statement. The demand was made by the industry delegation, led by Ravi Gupta, Chairman of IFGE's Sugar Bioenergy Group, and expert Member on the Board of NFCSF, in a meeting held at the PMO (Prime Minister's Office) recently, it said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Sasha Meneghel já está irreconhecível após sua recente transformação. 33 Bridges Undo In 2022-23 season (October-September), NFCSF said the sugar industry reached a significant milestone by diverting 43 lakh tonnes of sugar towards ethanol production , enabling the supply of 369 crore litres of ethanol, which accounted for 73 per cent of total ethanol blended with fuel across the country. However, in 2023-24, ethanol supply from sugar-based feedstocks declined to 270 crore litres, contributing only 38 per cent to the national blending programme. Live Events "This is projected to fall further to 250 crore litres in 2024-25, making up just 28 per cent of the total blending target of 900 crore litres," it said in a statement. The main reason for this drop is that ethanol procurement prices have not been increased in line with the rise in the Fair and Remunerative Price (FRP) of sugarcane , making ethanol production less profitable for sugar mills . Although there is potential to divert up to 40 lakh tonnes of sugar into ethanol this year, only 32 lakh tonnes are expected to be diverted. "This shortfall is due to the gap between ethanol prices and better returns from selling sugar directly in the domestic market," NFCSF said. As a result, India's ethanol production capacity of 952 crore litres per year -- including 130 crore litres from multi-feed distilleries -- is being under-utilised. The Ethanol Blending Programme (EBP) has emerged as a vital solution to the longstanding issue of surplus sugar stocks under the National Policy on Biofuels - 2018, which set an ambitious target to divert 60 to 70 lakh tonnes (LMT) of excess sugar annually towards ethanol production. Since the policy's inception, India's ethanol production capacity has expanded significantly from 518 crore litres in 2018 to 1,800 crore litres in 2025. Correspondingly, the ethanol blending rate with petrol has risen sharply from 4.22 per cent to 18.61 per cent as of April 30, 2025. Sugar production has reached 286.9 lakh tonnes as on April 30 of the ongoing 2024-25 season, out of which 30 lakh tonnes have been diverted for ethanol. The industry has additionally suggested evaluating the possibility of blending ethanol in diesel as a future strategy to expand ethanol use across fuel types. NFCSF noted that diverting sugar to ethanol does not reduce the actual production of sugar but helps to manage surplus sugar stocks, stabilise market prices, improve the financial health of sugar mills, and ensure timely payments to farmers.
The Hindu
22-05-2025
- The Hindu
Farmers seek increase in FRP for sugarcane
State Sugarcane Cultivators' Association has sought an increase in Fair and Remunerative Price (FRP) for sugarcane for the current season 2025-26. A delegation of farmers, led by Atahalli Devaraj, secertary of the association, met the authorities in Bengaluru on Wednesday and submitted their demands. Mr. Devaraj told reporters here on Thursday that FRP for sugarcane has been increased by only ₹150 a tonne, which, he said, is unscientific. A review must be conducted, and the price should be fixed at ₹4,500 a tonne as per the CACP (Commission for Agricultural Costs and Prices) report, he added. The association members also reiterated their long-pending demand of fair share of profits accrued from sugarcane by-products, by the sugar mills. In a memorandum submitted to the authorities, the association said the government has fixed an additional price of ₹150 a tonne for sugarcane by-products. But the sugar mills were yet to pay the amount due for the previous year (2024-25), and steps should be taken to ensure that the amount was released to the farmers immediately, Mr. Devaraj said. The association claimed that there was an outstanding amount of ₹950 crore payable to the sugarcane farmers. On the issue of computing the rates, the farmers said that FRP should be the price at the field and pointed out that sugar mills tend to recover transportation charges from field to factories. This, Mr. Devaraj said, should be stopped. The association pointed out that sugar factories deduct 25% of payment for sugarcane crop that was burnt due to fire and wanted the government to step in and end this practice. Seeking transparency in weighing, the farmers have sought the installation of weighing machine in front of sugar mills. Besides, there is an 8% deduction by way of wastage during harvesting and this should also be stopped, according to the association. The delegation, which met senior officials of the Directorate of Sugarcane Development and Sugar, also discussed other issues faced by farmers and urged the authorities to address their demands.
