Policy Hypocrisy: Protecting the sugarcane farmer and consumer, abandoning the sugar industry
As anticipated, the Cabinet Committee on Economic Affairs chaired by the Prime Minister has approved an 8 percent hike in the fair and remunerative price (FRP) for sugarcane to Rs 340 a quintal for the 2024-25 cane crushing season. This price will be applicable to a sugar recovery rate of 10.25 percent.
Unfortunately, this decision adds another layer of distress to the already beleaguered Indian sugar industry, grappling with feedstock restrictions and a de facto ban on exports.
Given the dynamics of India’s competitive democratic politics, both central and state governments often rush to revise upwards the fair and remunerative price (FRP) and State advised price (SAP) of cane without adequately considering the repercussions for the country’s milling sector. This predilection is not difficult to understand.
One could argue that the government’s approach is rooted in addressing the concerns of sugarcane farmers, who form a significant vote bank. The increase in FRP could be seen as a measure to support farmers and ensure a fair return on their investment……….
For More Details Visit: https://www.moneycontrol.com/news/opinion/policy-hypocrisy-protecting-sugarcane-farmer-consumer-sugar-industry-12383831.html
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