Latest news with #FairandRemunerative
Time of India
07-05-2025
- Business
- Time of India
Carry-forward stock likely to keep sugar price stable, says ISMA DG
Pune: Director general of Indian Sugar and Bio-energy Manufacturers Association (ISMA) Deepak Ballani said the sugar price might remain stable despite a decline in production because of surplus carry-forward stocks .The sugar millers' association anticipates the sugar production to drop to 264 lakh tonnes in the 2024-25 cycle (Oct to Sept). India's sugar output during the previous cycle was 299 lakh tonnes. Factoring in the diversion of sugar towards ethanol production, the decline in sugar production would be around 20 lakh tonnes, Ballani told lower sugar production could be attributed to damage to crops because of unseasonal rainfall in Maharashtra and red rot in Uttar Pradesh, he said. India was well placed with carry-forward stocks despite a drop in production, he said. This would support domestic consumption until the new production hits the market."Sugar production was enough to meet domestic consumption and exports in addition to ethanol production. This year, the govt has allowed 10 lakh tonnes of exports, of which Maharashtra's share is around 3.5 lakh tonnes," Ballani had 80-90 lakh tonnes of export quota for 2023-24. By September-end, stocks are expected to be 80 lakh tonnes. This led to higher carry-forward stocks to cater to domestic consumption for two months to address the gap between the new sugar coming in. Typically, 45-50 lakh tonnes were enough to meet consumers' demand for two months, Ballani expects the sugarcane production to pick up in the 2025-26 season in Maharashtra and said ISMA was lobbying with the govt to establish a linkage between Fair and Remunerative Price (FRP), and sugar and ethanol prices to make the sugar price more competitive."Every time the FRP is increased, there should be a corresponding revision in sugar and ethanol prices. The minimum selling price for sugar is Rs31 per kg. It has not been revised since 2019. The ex-mill price decreases to Rs30-33 in Maharashtra and Rs36 in Uttar Pradesh because of surplus stock at the start of the season. It is much below the production cost. The average cost of production is Rs41 per kg," Ballani said.
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Business Standard
30-04-2025
- Business
- Business Standard
Centre hikes sugarcane FRP by Rs 15 per quintal for 2025-26 season
The Union Cabinet Committee on Economic Affairs today hiked the Fair and Remunerative Price (FRP) of sugarcane for the 2025-26 season, which will start from October, by Rs 15 per quintal to Rs 355. This is 4.2 per cent more than the FRP for the 2024-25 sugar season, which will conclude in September. The FRP is linked to a basic recovery of 10.25 per cent. A premium of Rs 3.46 per quintal will be provided for every 0.1 percentage point increase in recovery over and above 10.25 per cent. A reduction in FRP by Rs 3.46 per quintal will be applicable for every 0.1 per cent decrease in recovery from the basic rate. But to protect the interest of those sugarcane farmers who are growing older varieties of cane, the government has also decided that there shall not be any deduction in the case of sugar mills where recovery is below 9.5 per cent. Such farmers will get an FRP of Rs 329.05 per quintal for sugarcane in the ensuing sugar season 2025-26. As per the Sugarcane (Control) Order of 1966, FRP is the minimum price that sugar mills have to pay to sugarcane farmers. Recovery rate is the amount of sugar that sugarcane fetches — the higher the quantum of sugar derived from sugarcane, the greater the price it fetches in the market. Big sugarcane-producing states such as Uttar Pradesh, Punjab, and Haryana fix their own sugarcane price, called 'state advisory prices' (SAPs), which is higher than the Centre's FRP. Meanwhile, welcoming the Centre's decision, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), in a statement issued today, said that the revised FRP is projected to enhance the earnings of approximately 5.5 crore sugarcane farmers by over Rs 20,000 crore, taking the total to around Rs 1.2 trillion in the upcoming sugar season. "This decision will not only support farmer livelihoods but also strengthen the overall agricultural economy, particularly in rural regions where sugarcane farming forms a major source of income," ISMA said. It also requested the Centre to align the Minimum Selling Price (MSP) of sugar and ethanol procurement prices with the revised FRP of sugarcane. Such alignment is essential to maintain financial sustainability across the value chain — from farmers to sugar mills, ISMA said. Sugar MSP has not been revised since 2019.
