The Commission for Agricultural Costs and Prices (CACP) has recommended a hike in the fair and remunerative price (FRP) of sugarcane to Rs 315/quintal for a 10.25% sugar recovery rate for 2023-24 against Rs 305 now, reports The Hindu BusinessLine.
Considering this hike, the sugarcane farmers would get a 3.3% hike in the price they get from the sugar mills for their produce in the next season starting in October.
According to media report, the decision on the FRP will be taken by the Cabinet this month.
The hike in the FRP will be crucial as it will formulate the opinion of sugarcane farmers ahead of the forthcoming general election in 2024. The government is planning to increase the ethanol blending target to 15% next season and it needs to encourage farmers to cultivate cane.
For the current season, the sugar output is likely to fall to 32.8 million tonnes (mt) from 35.76 mt last season, as per the Indian Sugar Mills Association (ISMA).
Since the cane crushing season for 2021-22, sugar cane price has not increased, while inputs cost and labourers’ wage have increased by 15% in the corresponding period. So the sugarcane crop, once considered one of the most remunerative crops, has lost its sheen to the farmers. The disenchantment with the crop has been so high that even field crops like wheat, paddy, and maize compete favourably with the cane crop.
Agricultural economists of CACP should reflect on the positives of cane crops to the job market. This has become all the more important after the almost complete mechanisation of wheat cultivation and its adverse effect on employment opportunities. So, the Govt should incentivise cane cultivation which will not only produce sugar but also increase industrialisation and job opportunities for wage labourers