Sugarcane farmers to get more money in hand as govt raises fair price to Rs 290/quintal
The farmers will get a return of much more than 50% over their cost, as the FRP is higher by 87.1% over production cost.
The cabinet committee on economic affairs (CCEA) chaired by Prime Minister Narendra Modi has approved fair and remunerative price (FRP) of sugarcane for sugar season 2021-22 (October – September) at Rs 290/- per quintal for a basic recovery rate of 10%. The FRP approved shall be applicable for the purchase of sugarcane from the farmers by sugar mills with effect from October 1, 2021.
This will provide a premium of Rs 2.90/qtl for each 0.1% increase in recovery over and above 10%, and a reduction in FRP by Rs 2.90/qtl for every 0.1% decrease in recovery. The move is aimed to protect farmers’ interests as there will be no deduction in the case of sugar mills where recovery is below 9.5%. These farmers will get Rs 275.50 per quintal for sugarcane in ensuing sugar season 2021-22 in place of Rs 270.75/qtl in current sugar season 2020-21.
The cost of production of sugarcane for the sugar season 2021-22 is Rs 155 per quintal. The farmers will get a return of much more than 50% over their cost, as the FRP is higher by 87.1% over production cost.
About 2,976 lakh tons of sugarcane worth Rs. 91,000 cr was purchased by sugar mills in the current season. This is an all-time high level and is the second-highest next to the procurement of paddy crops at the minimum support price.
The total remittance to the sugarcane farmers will be about Rs 1 crore. The government aims to ensure that sugarcane farmers receive benefits on time.
The sugar sector is an important agro-based sector that impacts the livelihood of about 5 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.
FDI proposal approved to boost National Monetisation Pipeline
Another proposal was approved by the cabinet committee on economic affairs that will boost the infrastructure plan. CCEA has approved the FDI proposal for an investment of up to Rs 15,000 crore in M/s Anchorage Infrastructure Investment Holding Ltd, an India investment holding incorporated specifically for the purpose of investment in infrastructure and the construction-development sectors.
The investment will be a major boost to the infrastructure and construction sector and also to the airport sector. The investment will also be a significant boost to the recently announced National Monetisation Pipeline (NMP).
(With inputs from Press Information Bureau)