Hike in FRP is 3.28% more than the current sugar season 2022-23
For the sugar season 2023-24 (October-September), the Indian government has raised the Fair and Remunerative Price (FRP) for sugarcane to Rs 315 per quintal, an increase of Rs 10 from the 2022-23 sugar season. The Indian Cabinet Committee on Economic Affairs (CCEA) had on June 28, 2023, approved the FRP of sugarcane for the 2023-24 sugar season.
The FRP for the sugar season 2022-23 is 3.28 % higher than the current sugar season 2022-23, which is Rs 305 per quintal.
The new FRP will be applicable for the purchase of sugarcane from farmers in the sugar season starting October 1, 2023, 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 3.07 per quintal over the FRP, and a deduction of Rs 3.07 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 291.975 per quintal for sugarcane in the ensuing sugar season 2023-24, up from Rs 281.125 per quintal in the current sugar season 2022-23.
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.
Sugarcane FRP and SAP in 5 years (2018-19 to 2022-23)
| Year | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 |
| All India FRP (Rs per quintal) | 275 | 275 | 285 | 290 | 305 |
| Uttar Pradesh SAP (Rs per quintal) | |||||
| Early variety | 325 | 325 | 325 | 325 | 350 |
| Mid variety | 315 | 315 | 315 | 315 | 340 |
| Late variety | 310 | 310 | 310 | 310 | 335 |
| Uttarakhand SAP (Rs per quintal) | |||||
| Early variety | 327 | 327 | 327 | 327 | 355 |
| Mid variety | 317 | 317 | 317 | 317 | 345 |
| Late variety | 310 | 310 | 310 | 310 | – |
| Haryana SAP (Rs per quintal) | |||||
| Early variety | 340 | 340 | 350 | 362 | 372 |
| Mid variety | 335 | 335 | 345 | 355 | 365 |
| Late variety | 335 | 335 | 345 | 355 | 365 |
| Punjab SAP (Rs per quintal) | |||||
| Early variety | 310 | 310 | 310 | 360 | 380 |
| Mid variety | 300 | 300 | 300 | 350 | 370 |
| Late variety | 295 | 295 | 295 | 345 | 365 |
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