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The Hindu
22-05-2025
- Business
- 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.
India.com
01-05-2025
- Business
- India.com
5 Crore Farmers To Gain As Centre Hikes Fair Price For Sugarcane To Rs 355
New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved an increase in the fair and remunerative price (FRP) of sugarcane to Rs 355 per quintal for a basic recovery rate of 10.25 per cent for the 2025-26 sugar season (October-September) keeping the interest of farmers in mind, according to a cabinet communique. The FRP for the sugar season 2025-26 is 4.41 per cent higher than the current sugar season 2024-25. It also provides for a premium of Rs 3.46 per quintal for each 0.1 per cent increase in recovery over and above 10.25 per cent, and reduction in FRP by Rs 3.46 a quintal for every 0.1 per cent decrease in recovery. However, the government, with a view to protect the interest of sugarcane farmers, has also decided that there will not be any deduction in case of sugar mills where recovery is below 9.5 per cent. Such farmers will get Rs 329.05 per quintal (qtl) for sugarcane in the ensuing sugar season 2025-26, the statement explained. The cost of production (A2+FL) of sugarcane for the sugar season 2025-26 is Rs173/qtl. This FRP of Rs 355/qtl at a recovery rate of 10.25 per cent is higher by 105.2 per cent over production cost. The FRP approved shall be applicable for purchase of sugarcane by mills from the farmers in the sugar season 2025-26 starting with effect from October 1, 2025. The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crore sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation. The FRP has been determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with state governments and other stake-holders. In the previous sugar season 2023-24, out of cane dues payable of Rs 1,11,782 crore, about Rs 1,11,703 crore of cane dues have been paid to farmers, as on April 28 this year, which means that 99.92 per cent cane dues have been cleared. In the current sugar season for 2024-25, out of the cane dues payable of Rs 97,270 crore, about Rs 85,094 crores have been paid to farmers, as on April 28, which amounts to 87 per cent of the cane dues being cleared.
