Sugarcane FRP and Sugar MSP:
- Sugarcane Fair and Remunerative Price (FRP) steadily increased from INR 275 per 100 kg in 2018-19 to INR 340.2 Kg for 2024-25, the MSP of sugar on the other hand has been kept constant at INR 31 per Kg throughout.
- The current MSP of sugar is INR 31 per kg. After constant push from industry stakeholders, the government is likely to decide on increasing the minimum selling price (MSP) of sugar within the next few days.
- The Government of India (GOI) in Feb’24 raised the Fair and Remunerative Price (FRP) of sugarcane to INR 340 per quintal at a sugar recovery rate of 10.25% for the upcoming season 2024-25 that starts from Oct’24. This is about 8% higher than the FRP of sugarcane for the current season 2023-24.
- With ex-mill prices trading at an average of INR 35-36 per Kg mill’s liquidity will be affected alongside the timely cane payment to farmers.
- Thus, with the revised FRP of INR 340/quintal, the industry including the National Federation of Cooperative Sugar Factories (NFCSF) has been seeking to increase sugar MSP to INR 42 per Kg in line with the FRP hike.
- The government is considering a reasonable hike in MSP for the 2024-25 season which will keep prices supported in the coming weeks of the month.
