Union Cabinet and Cabinet Committee on Economic Affairs (CCEA) are likely to take decisions on raising fair and remunerative price (FRP) of sugarcane and a scheme for balanced use of chemical fertilizers—PM PRANAM.

According to sources, FRP for sugarcane may go up to ₹315 per quintal against ₹310. With the amendment of the Sugarcane (Control) Order, 1966 in October 2009, the concept of statutory minimum price (SMP) of sugarcane was replaced with FRP.

The Centre revises FRP at regular intervals on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP), and after consultation with State governments and other stakeholders.

Under the FRP system, the farmers are not required to wait till the end of the season or for any announcement of the profits by sugar mills or the government. 

To ensure higher sugar recoveries are adequately rewarded, FRP is linked to a basic recovery rate of sugar from sugarcane, with a premium payable to farmers for higher recoveries.

For example, FRP for 2022-23 sugar season was fixed at ₹305 per quintal. It was linked to a basic recovery of 10.25 per cent, subject to a premium of ₹3.05 per quintal for each 0.1 per cent increase of recovery over and above 10.25 per cent and reduction in FRP at the same rate for each 0.1 per cent decrease in the recovery rate till 9.5 per cent. 

To protect farmers’ interests, the Centre has decided that there shall not be any deduction even if recovery is below 9.5 per cent and fixed ₹282.125 per quintal for sugarcane for the current season.

PM PRANAM

Meanwhile, sources indicated that Cabinet will give its approval for PM PRANAM (Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth) on Wednesday. The scheme seeks to lessen the use of chemical fertilizers by farmers and, thus, reduce the subsidy burden on the government. The scheme was announced by Finance Minister Nirmala Sitharaman on February 01 as part of the Budget for FY24.

The scheme will be in force for three years. It is expected to decrease the use of fertilizers by 45.78 LMT. In monetary terms, it will save around ₹20,000 crore.  

Earlier, while making a submission before the Parliamentary Committee, Department of Fertilizers (DOF) informed that the scheme is expected to be implemented in 2023-24, subject to approval by the Cabinet. The DOF will be the sponsoring entity for this scheme, while the Department of Expenditure (DOE) will administer the funds for 3 years. The objective of the scheme is to incentivise States that reduce the use of chemical fertilizers and proactively promote alternate fertilizers.

Related Topics