Lok Sabha Question No. 2257 (UNSTARRED), answered on 2025-03-12
Subject: Fair and Remunerative Price of Sugarcane
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Ms Iqra Choudhary

## GOVERNMENT OF INDIA

## MINISTRY  OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

UNSTARRED QUESTION NO.2257

TO BE ANSWERED ON 12TH MARCH, 2025

## FAIR AND REMUNERATIVE  PRICE OF SUGARCANE

## 2257. MS IQRA CHOUDHARY:

Will the Minister of CONSUMER  AFFAIRS,  FOOD  AND PUBLIC DISTRIBUTION be pleased to state :

- (a) the key  factors considered while  determining the Fair Renumerative Price (FRP) of sugarcane each year and the manner in  which the Government ensures that the FRP adequately reflects the rising costs of production, input prices, inflation  and fair earnings for farmers;
- (b) the reasons for which the Government has not yet announced the FRP for the Llpcomlrlg  season;
- (c) the expected timeline  for its announcement and the measures that are being taken to ensure that the farmers receive timely  information  about the pricing;
- (d) whether the Government is aware that many sugar mills  delay or fail  to pay farmers the  FRP for  sugarcane on  time  and the steps that have been taken to  ensure strict enforcement of timely payments; and
- (e) if  so, the details thereon

## ANSWER

MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

(SHRIM ATI  NIMUBEN JAYANTIBHAI  BAMBHANIYA)

- (a): The  Central  Government fixes Fair  and  Remunerative Price  (FRP) of  sugarcane having  regard to the  factors mentioned in  Clause 3(1)  of  the Sugarcane (Control)  Order, 1966 viz.,
1. cost of production of sugarcane;
- il. return to  the growers from  alternative crops and the general trend of  prices of agricultural commodities;
111. availability of sugar to consumers at a fair price;
- iv . price at which sugar produced from sugarcane is sold by sugar producers; recovery of sugar from sugarcane;
- V. realization made from  sale of by-products viz.  molasses, bagasse and press mud or their imputed values;
- Vl. and reasonable margins for the growers of sugarcane on account of risk and profits.

The FRP mechanism ensures that sugarcane farmers receive a fair price that is reflective of  their cost of production, market conditions, inflation and input prices. By regularly reviewing  and adjusting the FRP, the Government aims to provide fair  earnings to farmers while  balancing the financial  sustainability of  the sugar industry. The involvement of  advisory bodies, consultations with  stakeholders and monitoring of  market conditions ensures that the FRP adequately reflects the  challenges faced by  farmers and the broader economIC context.

(b) &  (c): The Government is in the process of seeking comments and suggestions from sugar-producing States and various other Ministries/Department indicating a consultative approach in finalizing/revising the FRP of Sugarcane.

Generally, the Government announces the FRP well  ahead of  the upcoming sugar season and the decision is informed  to all the stakeholders including  farmers.

(d) & (e): Payment of cane dues to  farmers is a continuous process and cane payment by the sugar mills  to the farmers are being made on regular basis resulting in reduction of cane dues.

With a view to facilitate payments of outstanding dues to the sugarcane farmers, the Central Government has taken various steps in the form of policy  interventions from time to time as and when required, which  are as under:

- 1) Central Government fixes Fair and Remunerative Price (FRP) of sugarcane having regard to the  factors mentioned in  Clause 3(1)  of the Sugarcane (Control)  Order, 1966
- 11) Diversion of  surplus sugar to  production of  ethanol led to  improved financial conditions of sugar mills.
- 111) Government allowed export of  10 LMT  Sugar during  current Sugar Season 202425 (Oct - Sept) to prevent fall  in ex-mill  prices of  sugar and accumulation of  cane prIce arrears.
4. iv) Minimum Selling  Price  of  sugar was fixed  initially at ? 29/ kg  w.e.f 07-06-2018; and revised to ? 3 1/kg w.e.f.  14-02-2019.

As  a  result  of  these measures, significant  reduction  has been seen in  cane price arrears. Up to  Sugar Seasons 2023-24,  more than 99.9% cane dues have been cleared and in the current Sugar Season 2024-25,  more than 80 % cane dues have been cleared as on 05.03.2025

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