Prime Minister Narendra Modi on Thursday hailed the move to increase the price of procuring sugarcane by 8 per cent saying his government is committed to fulfil every resolution related to farmers' welfare. The Union Cabinet gave its nod on Wednesday to increase the fair remunerative price of sugarcane to Rs 340 per quintal.
"Our government is committed to fulfill every resolution related to the welfare of our farmer brothers and sisters across the country," said PM Modi in a post on X.
"In this context, a historic increase in the price of sugarcane purchase has been approved. This step will benefit crores of our sugarcane producing farmers," he added.
For the 2024-25 season starting October, the minimum price that mills will have to pay to sugarcane growers has now been increased by Rs 25.
This is the highest Fair and Remunerative Price (FRP) for sugarcane that has been announced by the Modi government since coming to power in 2014 amid protests by farmers for a legal guarantee for MSP.
In terms of quantum, this is the second time when the Modi government hiked the FRP by Rs 25 per quintal in one go.
The decision to increase the FRP was given a green signal during the meeting of the Cabinet Committee on Economic Affairs (CCEA) which was chaired by PM Modi and the move comes just months ahead of the general elections.
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Maharashtra, Uttar Pradesh, and Karnataka are the major sugarcane producing states in the country.
Addressing the media following the meeting, Union minister Anurag Thakur said, "It has been decided to fix the price for the upcoming sugarcane season, in the period from October 1, 2024, to September 30, 2025, to ensure the fair and reasonable price of sugarcane to the farmers by the sugar mills."
"It has been decided to fix the price at Rs 340 per quintal for the year 2024-25 as compared to the previous year which was Rs 315, which has increased to Rs 340 per quintal this year," he added.