Union Minister Piyush Goyal while addressing the cabinet briefing on Wednesday, said that fair & remunerative price (FRP) for sugarcane has been increased to ₹290 per quintal for 2021-22, which will be based on 10% recovery. If recovery is less than 9.5%, then farmers will be given ₹275 per quintile.
The approval is the highest ever FRP, approved for sugarcane farmers and the decision will benefit 5 crore sugarcane farmers & their dependents, as well as 5 lakh workers employed in sugar mills and related ancillary activities, he announced.
The decision to increase the fair and remunerative price (FRP) of sugarcane for the 2021-22 marketing year (October-September) was taken in the Cabinet meeting held today. The government had fixed sugarcane FRP at ₹285 per quintal for the current 2020-21 marketing year.
The minister further said that the use of ethanol is increasing fast and 7.5-8% ethanol blended into petrol at the moment. The percentage of ethanol blended in petrol is expected to go up to over 20% over next 2-3 years, he added.
The central government announces the FRP, the minimum price that mills have to pay to cane growers, every year before start of the sugarcane crushing season.
However, many state governments, including Uttar Pradesh and Tamil Nadu, have been announcing their sugarcane rates (state advised price or SAP) over and above the FRP.
Last week, the Union Cabinet approved the implementation of National Mission on Edible Oils – Oil Palm with a financial outlay of ₹11,040 crore with the focus on increasing area and productivity of oilseeds and oil Palm.
