New delhi date. 3 The government on Wednesday revised the minimum price to be paid by mills to sugar cane growers for the marketing year 2022-23 starting from October by Rs. 15 by increasing Rs. 305 per quintal. This decision will benefit about 5 crore sugarcane farmers and their dependents and about 5 lakh workers employed in sugar mills and related ancillary activities.
Fair price for sugar marketing year
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a basic recovery rate of fair and remunerative price (FRP) of sugarcane of 10.25 per cent for the 2022-23 sugar marketing year at Rs. 305 per quintal has been sanctioned. Sugarcane production price for the 2022-23 marketing year is Rs 162 per quintal for every 0.1 per cent increase in the levy above 10.25 per cent to Rs. A premium of 3.05 per quintal will be given.
Promise to pay more than 50 percent
A2+FL cost of sugarcane production (ie, actual paid cost plus estimated value of family labor) for sugarcane season 2022-23 is Rs 162 per quintal,” a statement said. 88.3 per cent higher than the cost, ensuring a promise of 50 per cent return to farmers over their cost.The FRP for sugar season 2022-23 is 2.6 per cent higher than the current sugar season 2021-22.
Also introduced the concept of minimum selling price of sugar
The government has highlighted that it has increased the FRP by over 34 percent in the last eight years. It has also introduced the concept of minimum selling price (MSP) of sugar to reduce ex-mill prices of sugar and prevent accumulation of cane arrears. The current MSP is Rs 31 per kg.
India surpassed Brazil in sugar production
The food ministry said sugar mills will be given Rs. Financial assistance of over 18,000 crores has been provided. The government has also highlighted that India has overtaken Brazil in sugar production in the current sugar marketing year. In the last four seasons of 2017-18, 2018-19, 2019-20 and 2020-21, around 6 lakh tonnes, 38 lakh tonnes, 59.60 lakh tonnes and 70 lakh tonnes of sugar have been exported respectively.