In a surprising move aimed at appeasing approximately 50 million sugarcane farmers across the nation, the central government unveiled a strategic manoeuvre on the evening of February 21, 2024. During a meeting of the cabinet committee on economic affairs, chaired by Prime Minister Narendra Modi, a decision was reached to elevate the fair and remunerative price (FRP) of sugarcane by eight per cent.
Introduction to the FRP Announcement
The announcement of the fair and remunerative price (FRP) for sugarcane usually takes place around June, ahead of the sugar season starting in October. However, in a departure from this norm, the central government has announced an increase in the FRP in February 2024.
Historical Context and Timing of FRP Announcements
Last year’s FRP increase for sugarcane was sanctioned on June 28, 2023. The recent decision to increase the FRP by eight per cent, amounting to Rs 340 per quintal for the 2024-25 sugar season, marks a historic surge in sugarcane prices.
Details of the Recent FRP Increase
The cabinet committee ratified the FRP for sugarcane at Rs 340 per quintal for the 2024-25 sugar season, pegged with a sugar recovery rate of 10.25 per cent. The revised FRP is slated to come into effect from October 1, 2024.
Impact on Sugarcane Farmers and the Sugar Sector
The FRP, which exceeds the cost of sugarcane by 107 per cent, is poised to bolster the prosperity of sugarcane farmers. Despite already paying the highest sugarcane prices globally, the government remains committed to providing the world’s most affordable sugar to domestic consumers. This initiative is expected to benefit over 50 million sugarcane farmers and numerous stakeholders within the sugar sector.
Modi Government’s Commitment to Farmers
This move is seen as a realization of Modi’s pledge to double farmers’ income. The Modi government has ensured that farmers get the right price for their crops at the right time, citing the clearance of 99.5 per cent of cane dues from the previous sugar season (2022-23) and 99.9 per cent from all other seasons.
Farmer Protests and Government Responses
Meanwhile, ongoing protests by farmers in Punjab-Haryana have centered on demands for a legal guarantee of minimum support prices for crops. Despite four rounds of discussions between farmers and the government, a resolution remains elusive. The government’s proposition, offering legal assurances for only five crops over the next five years, was met with resistance from farmers, sparking speculation of escalating tensions.
Conclusion
The announcement of the increase in the fair and remunerative price (FRP) of sugarcane by eight per cent, to Rs 340 per quintal for the 2024-25 sugar season, is a significant move by the central government. It is aimed at benefiting over 50 million sugarcane farmers and various stakeholders within the sugar sector. This decision reflects the Modi government’s commitment to doubling farmers’ income and ensuring the prosperity of the agricultural sector.
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FAQs
- Why was the FRP increase announced in February instead of June?
- The government likely responded to mounting pressure from ongoing farmer protests, aiming to appease sugarcane farmers.
- How will the increase in FRP impact sugarcane farmers?
- The increase is expected to bolster the prosperity of sugarcane farmers, providing them with a higher income.
- What is the significance of the FRP increase for the sugar sector?
- The increase will benefit various stakeholders in the sugar sector, ensuring the availability of affordable sugar for domestic consumers.
- What is the Modi government’s stance on farmers’ income?
- The Modi government has pledged to double farmers’ income and has taken various policy interventions to support this goal.
- How have farmers responded to the government’s propositions regarding minimum support prices?
- Farmers have expressed dissatisfaction with the government’s propositions, leading to speculation of escalating tensions between the two parties.
