New Delhi: The recent decision by the Centre to augment the Fair and Remunerative Price (FRP) of sugarcane by 8 percent, particularly in the lead-up to the Lok Sabha elections and amid ongoing farmers’ protests, has garnered mixed reactions from agricultural experts, reported The New Indian Express.
They assert that this increment, coupled with certain conditions, will primarily benefit a specific segment of cultivators, namely those in states like Maharashtra, Karnataka, Tamil Nadu, and others where the FRP is enforced.
The Cabinet Committee on Economic Affairs has raised the sugarcane FRP from Rs 315 to Rs 340 for an initial recovery rate of 10.25%, adding riders to the decision. According to experts, due to the conditions set by the government, the augmented FRP will only favor farmers with a sugar recovery rate of 10.25% per quintal for the 2024-25 season. Notably, the national average recovery rate for the last three months stands at 9.79%. The recovery rate signifies the amount of sugar derived from sugarcane.
It is highlighted that the minimum price of sugarcane at Rs 315 per quintal corresponds to a recovery rate of 9.5%, underscoring the limitations of the existing FRP structure. The government provides incentives for each 0.1% increase in recovery beyond the fixed 10.25% rate, awarding farmers an additional price of Rs 3.32 per quintal, while a corresponding deduction occurs with a reduction in recovery by 0.1%.
In Uttar Pradesh, the leading sugar-producing state, the average recovery rate is approximately 10.05%, while in Maharashtra, the second-largest producer, it stands at 9.6%. Some states such as Uttarakhand, Punjab, Haryana, and Uttar Pradesh do not implement the FRP but instead rely on State Advisory Prices (SAP) set by their respective governments. The SAP in these states ranges from Rs 370 to Rs 391, surpassing the FRP.
V M Singh, President of MSP Guarantee Kisan Morcha, pointed out, “So the increment in FRP will have no impact on UP, Punjab, Haryana, and Uttarakhand farmers as these states already have higher SAP.”
