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NEW DELHI : The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved the highest ever fair and remunerative price (FRP) of 305 per quintal for sugarcane at a recovery rate of 10.25%.

FRP ensures a guaranteed price to sugarcane growers.

In a statement, the ministry of consumer affairs, food and public distribution said the increase in FRP would offer a premium of 3.05 per quintal for each 0.1% increase in the recovery rate over and above the basic 10.25% and a reduction in FRP by 3.05 a quintal for every 0.1% decrease in recovery.

Observing that sugarcane production cost for the 2022-23 sugar season would be 162 per quintal, the ministry said that the fair and remunerative price of 305 is 88% higher than the cost of production. The FRP for the ongoing sugar season (2021-22) is 290 per quintal.

It said the Centre had increased FRP by more than 34% in the past eight years.

It said the decision would benefit 50 million sugarcane farmers and their dependants and 500,000 workers employed in sugar mills and related activities.

Given the increase in the acreage and expected production of sugarcane in sugar season 2022-23, more than 360 million tonnes of sugarcane is likely to be purchased by sugar mills, for which the total remittance to sugarcane farmers is expected to be more than 1.2 trillion.

In another decision, the Union cabinet approved India’s updated Nationally Determined Contribution (NDC) towards the global response to climate change.

The updated NDC will be communicated to the UN Framework Convention on Climate Change (UNFCCC).

It seeks to enhance India’s contributions towards the achievement of the strengthening of the global response to the threat of climate change, as agreed under the Paris Agreement, said the ministry of environment, forest and climate change.

At the 26th session of the Conference of the Parties (COP26) to the UNFCCC, held in Glasgow last November, Prime Minister Narendra Modi announced five targets for India’s climate action program.

The update to India’s existing NDC translates the five “Panchamrit" into enhanced climate targets.

The five elements of India’s efforts to curb climate change are: reaching a non-fossil energy capacity of 500GW by 2030; meeting 50% of its energy requirements from renewable energy by 2030; reducing total projected carbon emissions by 1 billion tonnes by 2030; reducing carbon intensity of the economy to less than 45% by 2030; and achieving net-zero carbon emissions by 2070.

In 2015, India submitted its intended NDC to UNFCCC, comprising eight goals, including the cumulative installed capacity of renewable power to reach 40% of overall capacity and reducing the emissions intensity of GDP by 33-35% by 2030.

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