Sugarcane’s FRP hiked by ₹10 a quintal; Urea Subsidy Scheme to continue till FY25

The center on Wednesday announced a package of measures for the agricultural sector, including a comprehensive package of INR 3.70 lakhs and the long-awaited raise in fair and remunerative prices (FRP) for sugar cane.

Announcing the decisions taken by the Cabinet Economic Affairs Committee (CCEA), Minister of Information and Broadcasting Anurag Singh Thakur, the FRP of sugarcane for the 2023-24 season (October to September) will be US$315/quintal for a base recovery rate of 10.25. percent. Earlier, it was $310/qt. “This decision will benefit 5 crore sugarcane growers, as well as 5 workers from sugar mill workers and related ancillary activities,” the minister said.

The Cabinet also agreed to provide a premium of Rs 3.07/qt for every 0.1 percent increase in recovery over 10.25 percent and a reduction of Rs 3.07/qt in FRP for every 0.1 percent decrease in recovery.

farm strip package

Under the overall package, CCEA has agreed to continue the urea subsidy scheme to ensure continuous availability of urea to farmers at the same price of Rs 242 per 45kg bag, excluding taxes and neem coating charges. Of this, ₹3.69-lakh crore has been allocated for urea subsidy for three years (2022-23 to 2024-25). This is apart from the recently approved nutrient-based subsidy of Rs. 38,000 crore for the fall 2023-24 season.

Also read: CACP moots $10/quintal rise in sugarcane FRP for 2023-24

The package also includes Rs. 1,451.84 crore expenditure under Market Development Assistance (MDA) to promote organic fertilizers from ‘Gobardhan Mills’.

The Cabinet also gave its approval to the PM Program for the Restoration, Education, Nutrition and Improvement of Mother Earth (PM PRANAM) in order to encourage the balanced use of chemical fertilizers. Fertilizers Minister Mansukh Mandavia said that with this scheme, the center expects to save Rs 20,000 crore, of which states will get Rs 10,000 crore as an incentive.

Mandaviya also announced the introduction of sulfur-coated urea or “urea gold” to address sulfur deficiency in the soil and save input costs for farmers. The minister said that the price of this urea will be higher, but even in lower quantities, it will be beneficial on a par with traditional urea.