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The Union Cabinet approved the highest ever fair and remunerative price (FRP) of Rs 305 per quintal for sugarcane for the next marketing year starting October 2022.
In a major step to increase the income of sugarcane farmers, the Union Cabinet on Wednesday approved the highest ever fair and remunerative price (FRP) of Rs 305 per quintal for sugarcane for the next marketing year starting October 2022.
The government has increased the FRP by more than 34 percent in the past eight years, which will benefit 5 crore sugarcane farmers as well as 5 lakh workers employed in the sugar mills across the country, the government said.
The move will put pressure on sugar companies as they will have to pay more to procure and will come as a relief to the farmers as the sugarcane crushing season is set to start early this year. Maharashtra will see the season begin from October 1 instead of the end of that month, a senior official has said.
The sugarcane crushing season generally starts in October-November and continues till mid-April.
The Centre has also allowed an additional 1.2 million tonnes (MT) of sugar exports in the current season ending September 2022 taking into account higher-than-anticipated domestic production, according to government sources. The notification on this too is awaited.
This additional quota would be over and above 10 MT of sugar exports allowed for the current 2021-22 season.
The nodal Food Ministry is working on modalities to allocate the additional quota. The country's total sugar production is expected to increase by 5,00,000 tonnes to 36 million tonnes in the 2021-22 season, compared to the earlier estimate of 35.5 million tonnes, the sources added.
Even after the export of an additional quota of sugar, the country would be left with around 6-6.8 MT of closing stocks. Mills have exported 9.97 MT of sugar so far in the ongoing 2021-22 season to countries such as Nepal, Bangladesh, Sri Lanka, UAE, Afghanistan, Indonesia, Somalia and others.