Lok Sabha Question No. 1698 (UNSTARRED), answered on 2025-07-30
Subject: FRP  for Sugarcane Procurement
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Shri Mohite Patil Dhairyasheel Rajsinh, Dr. Amol Ramsing Kolhe, Smt. Supriya Sule, Prof. Varsha Eknath Gaikwad, Shri Bhaskar Murlidhar Bhagare

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

## LOK SABHA

UNSTARRED QUESTION NO. 1698

TO BE ANSWERED ON 30TH JULY, 2025

## FRP FOR SUGARCANE PROCUREMENT

1698. SMT. SUPRIYA SULE: DR. AMOL RAMSING KOLHE: PROF. VARSHA EKNATH GAIKWAD: SHRI BHASKAR MURLIDHAR BHAGARE: SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:

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

- (a) whether the Government has recently announced a revised Fair and Remunerative Price (FRP) for sugarcane procurement for the current crushing season and if so, the details thereof;

- (b) the impact of the revised FRP on sugarcane farmers in  Maharashtra,  particularly in districts  like  Kolhapur,  SoIapur,  Pune, and Ahmednagar, which  are among the top producers;

- (c) whether the Government has received any representations or demands from  sugarcane farmers or cooperative sugar mills  in Maharashtra regarding the adequacy  of the new FRP and if  so, the details thereof;

- (d) whether the current FRP sufficiently compensates for  the rising  cost of cultivation, labour, water and inputs borne by farmers in Maharashtra and if so, the details thereof;

- (e) the details of the steps taken by the Government to ensure timely payment of dues to sugarcane farmers in the said State by  sugar mills;  and

- (f) whether any penalties are imposed on defaulting  mills  and if so, the details thereoP

## ANSWER

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

(SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a): Yes. The Government has announced Fair  and Remunerative Price (FRP) of sugarcane for  ensuing Sugar Season 2025-26 at ? 355 per quintal at a basic recovery level of  10.25% providing a premium of ? 3.46/qtl for each 0.1% increase in recovery over and above 10.25% &  reduction in FRP by ? 3.46/qtl for every 0.1% decrease in recovery. For the current Sugar Season 2024-25 the FRP of  sugarcane has been fixed  at ? 340 per quintal  at a basic recovery level  of  10.25%.

(b): FRP recommended by  the Commission for  Agricultural Costs and Prices (CACP) covers the  A2+FL (actual paid-out costs plus imputed family  labour) cost of production for all  sugarcane producing  States and gives a margin of  105.2 percent over the cost of production at the national level.

(c) : No.

(d): The FRP is recommended by C ACP considering various factors like  cost of production of  sugarcane, market price of  sugar and by-products, sugar recovery rates, reasonable margins for farmers, returns from  alternate crops etc.

(e) and (f):  Payment of  cane dues to farmers is a continuous process and the powers have been delegated and vested with  the State Governments/UTs  for  monitoring  the cane price payrnent position of sugar factories on periodical basis and in case of delay in payments, suitable action is taken by them.

If  the FRP amount is not paid or is delayed, action under section 3(8) of the Sugarcane (Control) Order, 1966,  can  be  initiated against  the  concerned factory by  issuing a  Revenue Recovery Certificate (RRC)  by the State Government.

The Government of Maharashtra has issued 28 RRCs against sugar mills  in the State, out  of  which 16 sugar mills  paid  100% FRP. Further,  crushing  licences for  new  sugar season is not  issued by  Government of  Maharashtra unless the dues for  the previous  seasons is paid.

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