Government likely to increase sugarcane procurement price to Rs 340 a quintal

Sugarcane procurement price to increase to Rs 340/quintal from Rs 315/quintal

The government is expected to announce an increase in the sugarcane procurement price to Rs 340 a quintal from Rs 315, CNBC-Awaaz has said.

The Cabinet Committee on Economic Affairs (CCEA) is to meet late afternoon on February 21 to take up the matter, the report said.

Typically, the government determines the Fair and Remunerative Price (FRP) around June or later in the year.

The move comes at a time when farmers are marching towards the Capital to push for their demanding including a law to ensure a minimum support price for a variety of crops.

The revised prices are likely to be applicable for the 2025-26 sugar season. For the ongoing 2024-25 season, the government had raised FRP by Rs 10, taking the sugarcane purchase price to Rs 315.

Moneycontrol couldn’t verify the report independently.

While for other crops the government fixes the MSP, cane growers are offered FRP. The mechanism is governed by the Sugarcane (Control) Order of 1966. The Commission of Agricultural Costs and Prices (CACP) annually formulates recommendations for FRP, encompassing various agricultural commodities including sugarcane. The government evaluates these recommendations before implementation.