Sugarcane price of Rs 290 per qtl fixed, Rs 275.50 if recovery less

Kashmir Times. Dated: 8/26/2021 12:06:34 AM

KT NEWS SERVICE
NEW DELHI, Aug 25: The Union Cabinet chaired by Prime Minister Modi on Wednesday fixed the highest-ever sugarcane price of Rs 290 per quintal to be paid by the sugar mills to the farmers in the sugar season (October-September) of 2021-22, benefiting some 5 crore sugarcane growers. The price fixed in the 2020-21 sugar season was Rs 270.75 per quintal.

It also fixed the minimum price of Rs 275.50 per quintal to be paid to the farmers if the recovery goes below 9.5%.

The decision of this fair and remunerative price (FRP) balances the consumer interests and sugarcane farmers' interests and also benefits 5 lakh workers of the sugar mills and its ancillary factories, an official said.

This rate is based on the recovery of 10% and a premium or reduction of Rs 2.90 per quintal for every 0.1% variation in the recovery.

The cost of production of sugarcane for the sugar season 2021-22 is Rs. 155 per quintal. This FRP of Rs. 290 per quintal at a recovery rate of 10% is higher by 87.1% over production cost, thereby giving the farmers a return of much more than 50% over their cost, the official said.

With an expected increase in the sugarcane production in 2021-22, about 3,088 lakh tonnes of sugarcane will be bought by the mlls, giving a return of about Rs 1 lakh crore, which is Rs 9,000 crore more than the current year.

In the current sugar season of 2020-21 that ends in September, about 2,976 lakh tonnes of sugarcane worth Rs 91,000 crore was purchased by the sugar mills, which is at all time high and the second highest to the procurement of paddy at the minimum support price (MSP).

The FRP is determined on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders.

Meanwhile, in the last three sugar seasons of 2017-18, 2018-19 and 2019-22, about 6.2 lakh tonnes, 38 lakh tonnes and 59.60 lakh tonnes of sugar respectively has been exported. In the current season, against the export target of 60 lakh tonnes, contracts of 70 lakh tonnes have been signed and more than 55 lakh tonnes of it has been physically exported until August 23. The exports improved liquidity of the sugar mills, enabling them to clear the farmers' sugarcane dues.

 

Video

The Big Story: Death of Democracy... Read More
 

FACEBOOK

 

Daily horoscope

 

Weather