Cabinet increases fair and remunerative prices for sugarcane to Rs 315/qtl, okays PM PRANAM, urea subsidy scheme
Synopsis
Union cabinet decided to increase fair and remunerative prices for sugarcane for the next season by Rs 10 to Rs 315 per quintal, said Anurag Thakur while addressing media on Wednesday. “The decision will benefit 5 crore sugarcane farmers and their dependents, as well as 5 lakh workers employed in the sugar mills and related ancillary activities,” said Thakur.
Union cabinet decided to increase fair and remunerative prices for sugarcane for the next season by Rs 10 to Rs 315 per quintal, said Anurag Thakur while addressing media on Wednesday.
“The cabinet has approved the highest ever Fair and Remunerative Price of Rs 315/qtl for Sugarcane Farmers for sugar season 2023-24. The decision will benefit 5 crore sugarcane farmers and their dependents, as well as 5 lakh workers employed in the sugar mills and related ancillary activities,” said Thakur.
FRPs for sugarcane are typically fixed to ensure a guaranteed price to sugarcane growers and thus it does not take into account whether sugar mills will generate profit or stay in the red. Analysts opine that higher FRPs generally hurt the margins of the sugar mills. Most sugar industry stocks where trading in the negative territory, even as the Sensex and Nifty hit record highs.
Some listed sugar stocks like that of Dhampur Sugar Mills Ltd, Uttam Sugar Mills Ltd, E I D-Parry (India) Ltd and Dwarikesh Sugar Industries on Wednesday (as of 2 pm) were trading under pressure.
Last year, the government had increased the minimum price that mills have to pay to sugarcane growers by Rs 15 to Rs 305 per quintal for the 2022-23 marketing year starting October last year. The decision was aimed at benefiting around 5 crore sugarcane farmers and their dependents, as well as about 5 lakh workers employed in sugar mills and related ancillary activities.
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