In a significant move, the Modi Cabinet has approved a revision in the Fair and Remunerative Price (FRP) of sugarcane, impacting the upcoming sugar season 2024-25 from October to September. The decision entails fixing the FRP of sugarcane at £3.40 per quintal for a basic recovery rate of 10.25%. Moreover, an additional premium of £0.0332 per quintal will be provided for every 0.1 percentage point increase above the base recovery rate.
Furthermore, the government has also addressed concerns regarding sugar factories with lower recovery rates. For factories yielding a recovery rate of 9.5% or less, the fixed FRP stands at £3.1510 per quintal.
In addition to the adjustment in sugarcane pricing, the Cabinet has issued notifications regarding the export and import of key agricultural commodities. Firstly, the extension of the 20% export duty on parboiled rice has been confirmed, with no specified end date. This decision is poised to impact the dynamics of rice exports, ensuring stability and competitiveness in the market.
Secondly, the continuation of a nil import duty on yellow peas has been announced, subject to a specific condition. Import duty exemption will be applicable only to shipments with a Bill of Lading issued on or before 30th April 2024. This measure aims to streamline the import process and support domestic demand for yellow peas.
The implications of these decisions extend beyond the realms of the sugarcane and agricultural sectors.
Key players in the sugar industry, including Balrampur Chini, Shree Renuka Sugars, Dwarikesh Sugar, and Triveni Engineering, are expected to adapt their strategies in response to the revised pricing framework. Market analysts anticipate a ripple effect on various stakeholders within the agricultural value chain, from farmers to consumers.
The government’s proactive stance on sugarcane pricing reflects its commitment to ensuring fair returns for farmers while maintaining the sustainability of the sugar industry. By addressing concerns related to pricing and trade regulations, policymakers aim to foster a conducive environment for agricultural growth and economic stability.
In conclusion, the recent announcements by the Modi Cabinet underscore a concerted effort to address challenges and foster growth in the agricultural sector. As the nation prepares for the upcoming sugar season, stakeholders across the industry are poised to navigate the evolving landscape shaped by these policy decisions.
