Home Market News Cabinet approves raising sugarcane Fair and Remunerative Price (FRP) by Rs 25 to Rs 340 per quintal for 2024-25 season

Cabinet approves raising sugarcane Fair and Remunerative Price (FRP) by Rs 25 to Rs 340 per quintal for 2024-25 season

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On Wednesday, the government announced a Rs 25 increase in the minimum price paid by mills to sugarcane growers, setting it at Rs 340 per quintal for the 2024-25 season starting October. This marks the highest sugarcane Fair and Remunerative Price (FRP) under the Prime Minister Narendra Modi-led government since 2014. It’s the second time during Modi’s tenure that the FRP has been raised by Rs 25 per quintal in one go.

The decision to raise the FRP was made during a meeting chaired by Prime Minister Narendra Modi in the Cabinet Committee on Economic Affairs (CCEA). This move precedes the upcoming general elections.

Sugarcane cultivation is primarily concentrated in Maharashtra, Uttar Pradesh, and Karnataka.

Information and Broadcasting Minister Anurag Thakur announced that the CCEA has approved the sugarcane FRP for the 2024-25 season at Rs 340 per quintal, based on a sugar recovery rate of 10.25 percent. He highlighted that this price marks a historic milestone, representing an 8 percent increase over the current season’s FRP.

 Thakur emphasized that the new FRP is 107 percent higher than the A2+FL cost of sugarcane, aiming to bolster the prosperity of sugarcane farmers.

The minister emphasized that India offers the highest price for sugarcane globally. The revised FRP will take effect from October 1, 2024, and has been set based on recommendations from the Commission for Agricultural Costs and Prices (CACP).

“According to an official statement, this decision by the central government will benefit over 5 crore sugarcane farmers, along with their family members, and hundreds of thousands of others engaged in the sugar sector.

 It reaffirms the government’s commitment to doubling farmers’ income under Modi’s Guarantee.”

With the CCEA’s approval, sugar mills will now pay a Fair and Remunerative Price (FRP) of Rs 340 per quintal for sugarcane, with a recovery rate of 10.25 percent.

For every 0.1 percent increase in recovery, farmers will receive an additional Rs 3.32, while the same amount will be deducted for a reduction in recovery by 0.1 percent.

However, the minimum price for sugarcane is set at Rs 315.10 per quintal, with a recovery rate of 9.5 percent.

Over the past decade, the government has ensured that farmers receive fair prices for their crops in a timely manner.


“The government stated that 99.5 percent of the cane dues from the previous sugar season 2022-23, and 99.9 percent from all other sugar seasons, have been paid to farmers, resulting in the lowest cane arrears in the history of the sugar sector.

Thakur mentioned that over 80 percent of the total outstanding amount has already been disbursed to farmers for the current 2023-24 season.”

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In the 2013-14 marketing year, the FRP stood at Rs 210 per quintal, followed by Rs 220 in 2014-15, Rs 230 in 2015-16 and 2016-17. It increased to Rs 255 in 2017-18, Rs 275 in 2018-19 and 2019-20, Rs 285 in 2020-21, Rs 290 in 2021-22, Rs 305 in 2022-23, and finally reached Rs 315 per quintal in the 2023-24 marketing year.

The Central Government’s decision will benefit over 5 crore sugarcane farmers and numerous others in the sugar sector. It reaffirms the commitment to doubling farmers’ income. Under this approval, sugar mills will pay an FRP of Rs 340 per quintal at a recovery rate of 10.25%. For every 0.1% increase in recovery, farmers will receive an additional Rs 3.32, while the same amount will be deducted for a reduction in recovery. However, the minimum price of sugarcane is set at Rs 315.10 per quintal, even at a recovery rate of 9.5%.

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