Sugar millers are calling for an increase in the Minimum Selling Price (MSP) for sugar following the central government’s decision to raise the Fair and Remunerative Price (FRP) for sugarcane for 2024-25 season.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the FRP of sugarcane for Sugar Season 2024-25 at Rs 340/quintal at sugar recovery rate of 10.25%. This is historic price of sugarcane which is about 8% higher than FRP of sugarcane for current season 2023-24. The revised FRP will be applicable w.e.f. 01 Oct 2024.
With this approval, sugar mills will pay FRP of sugarcane @ ₹ 340/quintal at recovery of 10.25%. With each increase of recovery by 0.1%, farmers will get additional price of ₹ 3.32 while the same amount will be deducted on reduction of recovery by 0.1%. However, ₹ 315.10/quintal is the minimum price of sugarcane which is at recovery of 9.5%. Even if sugar recovery is lesser, farmers are assured of FRP @ ₹ 315.10/quintal.
Speaking to Chinamandi, Samarjeetsinh Ghatge, Chairman of Shahu Group (Kolhapur), said, “The central government has increased the FRP of sugarcane for the sugar season 2024-25 from the current Rs 315 per quintal to Rs 340 per quintal. The decision to increase the sugarcane FRP will benefit 5 crore sugarcane farmers and their families. The increase in FRP will help the farmers meet the rising cost of the sugarcane crop. With this decision, sugarcane farmers will receive an amount of more than Rs 10,000 crore through the sugar industry. The central government has always supported the sugar industry. Now, the government needs to increase the sugar MSP, which the sugar industry is continuously demanding. It should be at least Rs 3,600 per quintal.”
Recently, West Indian Sugar Mills Association (WISMA) and Indian Sugar & Bio-energy Manufacturers Association (ISMA) have also urged the government to increase the sugar MSP considering hike in sugar production cost.
