Union cabinet decided to increase fair and remunerative prices for sugarcane for the next season by Rs 25 to Rs 340 per quintal, from Rs 315 earlier, said Anurag Thakur while addressing media on Wednesday.
“The cabinet has approved the highest ever Fair and Remunerative Price of Rs 340/qtl for Sugarcane Farmers for sugar season 2024-25,” said Thakur.
FRPs for sugarcane are typically fixed to ensure a guaranteed price to sugarcane growers and thus it does not take into account whether sugar mills will generate profit or stay in the red. Analysts opine that higher FRPs generally hurt the margins of the sugar mills.
The FRP of sugarcane is fixed to ensure a guaranteed price to sugarcane growers. According to a 2022 report, the government has increased FRP by more than 34 per cent in the last eight years.
More to come.
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