On February 21, the Cabinet Committee on Economic Affairs gathered in New Delhi, concluding with decisive actions aimed at promoting the agricultural sector, specifically concerning sugarcane pricing and livestock policies. A new Fair and Remunerative Price (FRP) of ₹340/quintal was approved for sugarcane for the upcoming 2024-25 sugar season. This indicates a substantial increase of about 8% over the existing rate for the 2023-24 season. The revised FRP, seen as a significant stride towards farmer prosperity, will be in effect from October 1, 2024. Union Information and Broadcasting Minister Anurag Thakur addressed the media, underscoring the government’s commitment to upholding the welfare of India’s farmers, particularly those involved in the sugarcane industry, who will receive a comparatively superior price for their produce internationally.
This pricing decision is expected to benefit around five crore sugarcane farmers and their families, as well as multitude of individuals engaged in the sugar sector. The pricing structure includes provisions to adjust the compensation based on the sugar recovery rate, maintaining a guaranteed minimum of ₹315.10/quintal at a 9.5% recovery rate. In essence, the farmers are assured a beneficial and adjustable FRP, thereby supporting economic stability in farming communities. On a parallel note, the Cabinet revised the National Livestock Mission, introducing new components like a 50% capital subsidy capped at ₹50 lakh to foster entrepreneurship in non-traditional livestock farming and fodder seed processing. Additionally, the livestock insurance programme has been restructured to relieve farmers’ premium burdens, minimizing their share to 15%.
The Prime Minister, Narendra Modi reinforced the government’s resolve to honor the commitments made to the agricultural community, especially in light of the newly approved increase in the sugarcane FRP. This announcement surfaces amidst the ‘Delhi Chalo’ farmers’ protest, demanding support for Minimum Support Prices (MSP) across all crops. Even as the situation escalates with clashes at the Punjab-Haryana border resulting in casualties and injuries, such government initiatives are clear efforts to address agricultural priorities ahead of the imminent general elections. With sugarcane being a key crop in states like Maharashtra, Uttar Pradesh, and Karnataka, these policy changes are anticipated to create economic ripples and potential political implications ahead of the polls.