Sugarcane FRP for 2022-23 season raised to Rs 305 per quintal

FRP has been hiked by 5.2% from the current sugar season 2021-22

The Fair and Remunerative Price (FRP) for sugarcane for the sugar season 2022-23 (October-September) in India has been raised to Rs 305 per quintal, up by Rs 15 per quintal from the 2021-22 season. The Indian government’s Cabinet Committee on Economic Affairs (CCEA) had on August 3, 2022 approved the FRP of sugarcane for the 2022-23 sugar season.

The FRP for the sugar season 2022-23 is 5.17% higher than current sugar season 2021-22. The FRP for the 2021-22 season is Rs 290 per quintal.

The approved FRP will be applicable for the purchase of sugarcane from farmers in the sugar season 2022-23 (starting October 1, 2022) by the sugar mills.

The FRP is for the basic recovery rate of 10.25% from 100 kg of sugarcane. For every additional 0.1% increase in recovery, there will be a premium of Rs 3.05 per quintal over the FRP, and a deduction of Rs 3.05 per quintal for 0.1% decline in recovery.

To protect the interest of farmers, the CCEA also decided that there will be no deduction in the case of sugar mills where recovery is below 9.5%. Such farmers will get Rs 281.125 per quintal for sugarcane in the ensuing sugar season 2022-23, up from Rs 275.50 per quintal in the current sugar season 2021-22.

The FRP is determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP) after consultation with the state governments and other stakeholders.

While the Indian government announces the FRP to be paid by the sugar mills to the farmers, several states of the country have their own mechanism to determine the rates for sugarcane to be paid to the growers. It is called state advised price (SAP).

Currently, Uttar Pradesh, Uttarakhand, Haryana and Punjab have their own SAP for sugarcane, which is paid by the sugar mills in these states to the farmers. The SAP is higher than the FRP.

In its ‘Price Policy for Sugarcane: 2022-23 Sugar Season’, the CACP has again reiterated its recommendation that the states should stop fixing the SAP. It says that if the states want to continue with the SAP, then they should transfer the difference between the FRP and SAP to the cane farmers through direct benefit transfer (DBT).

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Sugarcane FRP and SAP in 5 years (2017-18 to 2021-22)

Year	All India FRP (Rs/Quintal)	State Advised Price (Rs/Quintal)
		Uttar Pradesh			Uttarakhand			Haryana			Punjab
		Early variety	Mid variety	Late variety	Early variety	Mid variety	Late variety	Early variety	Mid variety	Late variety	Early variety	Mid variety	Late variety
2017-18	255	325	315	310	326	316	295	330	325	320	310	300	295
2018-19	275	325	315	310	327	317	310	340	335	335	310	300	295
2019-20	275	325	315	310	327	317	295	340	335	335	310	300	295
2020-21	285	325	315	310	327	317	310	350	345	345	310	300	295
2021-22	290	350	340	335	–	–	295	362	355	355	360	350	345