🌸 NATIONAL HERO
May 1, 2025

A Sweeter Deal Amid Bitter Decline: India Hikes Sugarcane FRP

🪷 THEME: Agricultural Pricing, Farmer Welfare, Sugar Sector
🏛️ CATEGORY: Indian Economy, Agriculture & Allied Sectors, Government Policies

📜 INTRO WHISPER
Even as India’s sugar production falls, the government has offered farmers a sweeter promise — a fairer price. Behind every grain of sugar lies sweat, and today, that sweat is worth a little more.

🔍 HIGHLIGHTS

• Hike in FRP: The Cabinet Committee on Economic Affairs has increased the Fair and Remunerative Price (FRP) of sugarcane by ₹15 to ₹355 per quintal for the 2025–26 season (starting October 1), a 4.41% hike over the current rate.
• Cost & Margin: The official cost of production is ₹173/qtl. The new FRP at 10.25% recovery rate is 105.2% above this cost — a substantial margin aimed at ensuring farmer profitability.
• Incentives & Protections: For every 0.1% rise in sugar recovery over 10.25%, farmers get an additional ₹3.46/qtl. However, no deduction will be made for recoveries below 9.5% — such farmers will still get ₹329.05/qtl.
• Reason Behind the Move: The decision comes amid a sharp decline in sugar production — from 319 LMT last year to an expected 264 LMT this season. The hike in FRP is designed to incentivize more sowing in the next cycle.

🧭 GS PAPER MAP

• GS III: Agriculture – Major Crops, Pricing, and Related Issues
• GS II: Government Policies and Interventions – Minimum Support Prices / FRP
• GS III: Indian Economy – Issues Relating to Farm Income and Food Processing

🪔 A THOUGHT SPARK — by IAS Monk

A nation’s strength lies not in its stockpiles but in the hands that till its soil. When a fair price meets falling yields, it’s not just support — it’s trust made tangible. But how long can sweetness alone sustain a bitter crop?