New Delhi [India], July 19: The Union Cabinet on Wednesday announced Fair and Remunerative Price (FRP) of sugarcane at Rs 275 per quintal.
In an official statement, the Centre said the price hike will ensure that farmers avail a return of more than 50 percent over their cost.
“This FRP Rs. 275 per quintal at a recovery rate of 10 percent is higher by 77.42 percent over production cost thereby ensuring the promise of giving the farmers a return of more than 50 percent over their cost,” read the statement.
The cost of production of sugarcane, the government said, is Rs 155 per quintal.
The statement also said that the government is pro-farmers and will ensure that farmers get their dues in time.
“The Government through its pro-farmer measures will ensure that sugarcane farmers get their dues in time. Keeping the expected production of sugarcane in the sugar season 2018-19 the total remittance to the sugarcane farmers will be more than Rs. 83,000 crore,” it said.
The FRP would be applicable for the purchase of sugarcane from the farmers by the sugar mills from October 1, 2018.
The government also decided there would be no deduction in case of mills where the recovery rate is below 9.5 percent.
The sugar sector affects the livelihood of about five crore sugarcane farmers, and around five lakh workers employed in sugar mills.
The government earlier brought a package of Rs 7000 crore for the clearance of farmers’ dues.
It also decided a minimum price for the sale of sugar at Rs29 per kilogram to help clearance of sugarcane dues of the farmers.