To help alleviate the challenges faced by sugarcane farmers ahead of the upcoming general elections, the Union Cabinet on June 28 increased sugarcane prices by Rs 10 per quintal. According to CNBC Awaaz, sugarcane farmers will now get fair and remunerative prices (FRP) of Rs 315/quintal instead of Rs 305/quintal.

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During a Wednesday afternoon Cabinet and Cabinet Committee on Economic Affairs (CCEA) briefing, Union Minister Anurag Thakur and Health Minister Mansukh Mandaviya announced that it is the highest-ever FRP approved for sugarcane farmers.

For LIVE updates on the Cabinet briefing, check here.

The CCEA approved the new FRP at Rs 315/quintal for the October 2023 - September 2024 sugar season for a basic recovery rate of 10.25 percent. Additionally, a minor increase or decrease of 0.1 percent in the recovery rate will also lead to a substantial premium or deduction of Rs 3.07 per quintal, respectively, the CCEA said.

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The timing of this decision is crucial as it aligns with the upcoming sugar season starting in October. According to CNBC Awaaz, this new price hike will benefit over 50 million sugarcane farmers and others dependent on it. About 5 lakh farmers are involved in sugar mills and related allied activities.

What is FRP?

FRP or the fair and remunerative price is the minimum price at which sugarcane is bought from farmers. Farmers directly benefit from an increase in FRP as they get higher prices for selling sugarcane. The FRP is recommended by the Commission of Agricultural Costs and Prices (CACP) to the government.

The government recently increased the sugarcane FRP in August 2022 by Rs 15 per quintal.

The Cabinet on Wednesday approved schemes with a total outlay of Rs 3,70,128.7 crore for farmers. As a part of that, the CCEA approved the continuation of the Urea Subsidy Scheme under which Rs 3,68,676.7 crore has been committed for urea subsidy for three years. Rs 1,451 crore was approved for the Market Development Assistance Scheme to exemplify India's model of wealth from waste.

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The Cabinet gave its approval for the introduction of the National Research Foundation Bill, 2023, in Parliament to strengthen the research eco-system in the country. It also greenlit the ratification of the Headquarters Agreement between the Government of India and the Coalition for Disaster Resilient Infrastructure.

First Published:Jun 28, 2023 11:07 AM IST