India's government approves sugarcane FRP at Rs. 305 per quintal

The Cabinet Committee on Economic Affairs has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2022-23 (October – September) at Rs. 305/qtl for a basic recovery rate of 10.25%, providing a premium of Rs. 3.05/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by Rs. 3.05/qtl for every 0.1% decrease in recovery.

In addition, there shall not be any deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs. 282.125/qtl for sugarcane in ensuing sugar season 2022-23 in place of Rs. 275.50/qtl in current sugar season 2021-22.

The A2 + FL cost of production of sugarcane (i.e actual paid out cost plus imputed value of family labour) for the sugar season 2022-23 is Rs. 162/qtl. This FRP of Rs. 305/qtl at a recovery rate of 10.25% is higher by 88.3% over cost of production, thereby ensuring the promise of giving the farmers a return of more than 50% over their cost. The FRP for sugar season 2022-23 is 2.6% higher than sugar season 2021-22.

Keeping the increase in the acreage & expected production of sugarcane in the ensuing sugar season 2022-23, more than 3,600 lakh tons of sugarcane is likely to be purchased by sugar mills for which the total remittance to the sugarcane farmers is expected to be more than Rs. 1,20,000 crore.

In the previous sugar season 2020-21, about Rs. 92,938 crores cane dues were payable, out of which Rs. 92,710 crore has been paid & only Rs. 228 crore arrears are pending. In the current sugar season 2021-22, out of cane dues payable of Rs. 1,15,196 crores about Rs. 1,05,322 crores cane dues have been paid to farmers, as on 01.08.2022; thus, 91.42% cane dues have been cleared which is higher than earlier seasons. 

Govt approves sugarcane FRP at Rs. 305 per quintal

Largest producer & second largest exporter of sugar

India has surpassed Brazil in the sugar production in the current sugar season. With the increase in the production of sugar in past 8 years, India apart from meeting its requirement for domestic consumption has also consistently exporting sugar which has helped in reducing our fiscal deficit.  In last 4 sugar seasons 2017-18, 2018-19, 2019-20 & 2020-21, about 6 Lakh Metric Tonne (LMT), 38 LMT, 59.60 LMT & 70 LMT of sugar has been exported. About 100 LMT of sugar has been exported till 01.08.2022 in the current sugar season 2021-22  & exports likely to touch 112 LMT.