Sweetening the Harvest: Cabinet Nods to ₹25 Surge in Sugarcane Rates, Empowering 5 Crore Farmers

Sugarcane Fair and Remunerative Price (FRP) hike

1. Significant 8% Surge in Sugarcane Procurement Price:

In a significant move, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a substantial 8% increase in the fair and remunerative price (FRP) for sugarcane. The revised price, set at ₹340 per quintal for the upcoming 2024-25 marketing season, stands as a testament to the government's commitment to supporting over 5 crore, sugarcane farmers and their families.

2. Payment by Sugar Mills Tied to Recovery Rate:

Sugar mills will now disburse ₹340 per quintal based on a sugar recovery rate of 10.25%. Notably, for every 0.1% increase in recovery, farmers stand to gain an additional ₹3.32 per quintal, while a reduction in recovery results in a corresponding deduction.

Finding multibagger stocks is important for building wealth. Discover potential multibaggers at Sovrenn Discovery 

3. Minimum Price Assurance for Farmers:

Even in scenarios where the sugar recovery rate is at 9.5%, farmers are guaranteed a minimum FRP of ₹315.10 per quintal. This assurance aims to provide stability to farmers amid fluctuating recovery rates.

4. Contextual Relevance Amidst Political and Farmer Unrest:

The timing of this decision, just ahead of the Lok Sabha elections, adds a political dimension. It coincides with ongoing protests by Punjab farmers, who are advocating for legal guarantees regarding minimum support prices and full debt waivers.

5. Broad Impact on Sugarcane Sector:

The decision resonates beyond individual farmers, as the sugar sector plays a pivotal role in the lives of 5 crore sugarcane farmers and 5 lakh sugar mill workers. It has ripple effects on ancillary activities, including farm labor and transportation.

Investing has built huge wealth for several HNI investors. Learn investing FREE OF CHARGE at Sovrenn Education 

6. Comprehensive Cabinet Decisions:

I. National Livestock Mission Modification: Activities now include a 50% capital subsidy for establishing horse, donkey, mule, and camel entrepreneurship.

II. Fodder Seed Processing Infrastructure: Entrepreneurs, including private companies and startups, can now set up fodder seed processing units with a 50% capital subsidy.

III. Easing FDI norms in the Space Sector: Government efforts to attract foreign investment.

IV. Continuation of Women's Safety Scheme: A holistic scheme with a total cost of ₹1,179.72 crore, focusing on cyber forensic science laboratories and a national forensic data center.

V. Flood Management and Border Areas Programme (FMBAP) Continuation: Addressing critical aspects of flood control and anti-erosion measures, with an approved outlay of ₹4,100 crore for the next five years.


The approval of the sugarcane procurement price increase reflects the government's proactive stance in supporting farmers. Simultaneously, the broader spectrum of decisions underscores a comprehensive approach to economic development and social welfare, considering the diverse needs of the populace.

Also Read: India’s Inflation Rollercoaster: CPI falls to 6.83% after 15-month high