The Union Government on Wednesday. August 25,  decided to hike Fair and Remunerative Price (FRP) on sugarcane. The move is likely to benefit about 5 crore sugarcane farmers and their dependents, Union Minister Piyush Goyal said during a press briefing. 

The decision to approve the highest ever FRP on sugarcane of Rs 269 per quintal was taken during a Cabinet meeting.  The hiking sugarcane FRP is being seen as a step to woo the farmers in Uttar Pradesh and Punjab where assembly elections are due next year. 

In the current sugar season 2020-21, about 2,976 lakh tons of sugarcane of worth Rs 91,000 crore was purchased by sugar mills, which is at all-time high level and is the second-highest next to the procurement of paddy crop at MSP. Keeping the expected increase in the production of sugarcane in the ensuing sugar season 2021-22, about 3,088 lakh tons of sugarcane is likely to be purchased by sugar mills.  The Government through its pro-farmer measures will ensure that sugarcane farmers get their dues in time, a statement said. The FRP approved shall be applicable for the purchase of sugarcane from the farmers in the sugar season 2021-22 (starting October 1, 2021) by sugar mills. 

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