New Delhi, Aug 4 (IANS): The Cabinet Committee on Economic Affairs (CCEA) have approved the Fair and Remunerative Price (FRP) of sugarcane for sugar marketing year 2022-23 (October-September) at Rs 305 per quintal for a basic recovery rate of 10.25 per cent.

A premium of Rs 3.05 per quintal has been provided for each 0.1 per cent increase in recovery over and above 10.25 per cent, while there will be a reduction in FRP by Rs 3.05 per quintal for every 0.1 per cent decrease in recovery.

Aiming to protect interest of sugarcane farmers, the CCEA has also decided that there would not be any deduction in case of sugar mills where recovery is below 9.5 per cent. Such farmers are likely to get Rs 282.125 per quintal for sugarcane in 2022-23 as against Rs 275.50 per quintal in current sugar season 2021-22.

The cost of production of sugarcane for 2022-23 marketing year is Rs 162 per quintal. "This FRP of Rs 305 per quintal at a recovery rate of 10.25 per cent is higher by 88.3 per cent over cost of production, thereby ensuring the promise of giving the farmers a return of more than 50 per cent over their cost. The FRP for sugar season 2022-23 is 2.6 per cent higher than current sugar season 2021-22," the government has said in a statement, adding that the Centre has increased FRP by more than 34 per cent in past eight years.