Modi government’s gift to farmers, increase in FRP for this crop, know how much will be the benefit

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Cabinet Meeting Decisions: After increasing the MSP of Kharif crops, the Modi government has also given a big gift to sugarcane farmers. In the cabinet meeting chaired by Prime Minister Narendra Modi, the Modi government has decided to increase the fair and remunerative price of sugarcane for the next season. The Economic Affairs Committee of the Cabinet Committee has fixed sugarcane FRP per quintal for the 2023-24 season at Rs. An increase of 10 has been announced. The new sugarcane FRP is now Rs 315 per quintal.

Informing about the decisions taken in the cabinet meeting, Information and Broadcasting Minister Anurag Thakur said that the Modi government has decided to increase sugarcane FRP by Rs 10 per quintal for sugarcane farmers. Let us tell you that sugarcane farmers are given a guaranteed amount of their production by fixing FRP i.e. fair and remunerative.

5 crore sugarcane farmers will benefit from Modi government’s decision to increase sugarcane FRP. Along with this, 5 lakh employees working in sugarcane mills and related activities will also benefit from this decision. The government said that sugarcane FRP per quintal is Rs. 315 is fixed while the cost of production is Rs. 157 per quintal. That is, as per the recovery rate of 10.25 percent, sugarcane farmers are being given 100.6 percent more FRP than the cost of production. Procurement through the new FRP will be applicable from the new sugarcane season commencing October 1, 2023. The new FRP for sugarcane has been decided based on the recommendations of the CACP (Commission for Agricultural Costs and Prices) and after consultation with states and other stakeholders. FRP for sugarcane was Rs 220 per quintal in 2014-15 when the Modi government came to power.

What is the difference between SAP and FRP? There is a fixed price at which mills are legally bound to pay for sugarcane purchased from farmers. All the farmers of the country do not always benefit from the increase in FRP (Fair And Remunerative Price). In fact, in some states, apart from FRP, State Support Price (SAP) is also fixed for sugarcane production. States which produce more sugarcane determine the price of their own crop. This cost is called SAP.