New Delhi: To give farmers a return of more than 50% over their cost, the Cabinet Committee chaired by Prime Minister Narendra Modi has approved the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2018-19 at Rs. 275/- per quintal for a basic recovery rate of 10 per cent, providing a premium of Rs. 2.75/qtl for each 0.1 % increase in recovery over and above 10%.
The cost of production of sugarcane for the sugar season 2018-19 is Rs. 155 per quintal, the FRP at Rs. 275/- per quintal is higher by 77.42% over production cost thereby ensuring the promise of giving the farmers a return of more than 50 per cent over their cost.
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. The Government through its pro-farmer measures will ensure that sugarcane farmers get their dues in time.
The Government with a view to protect interest of farmers has also decided that there shall not be any deduction in case of mills where recovery is below 9.5%. Such farmers will get Rs. 261.25 per quintal for sugarcane in place of Rs. 255/qtl in the current season.
The FRP so approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2018-19 (starting w.e.f. 1st October, 2018) by the sugar mills.
The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crore 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.