New Delhi, The government has approved increase in the Fair and Remunerative Price (FRP) for sugarcane to Rs 290 per quintal, Union minister Piyush Goyal said on Wednesday, noting that it is not expected to impact sugar prices in the market. 

Briefing the media on decisions taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, Goyal said, “The FRP for sugarcane will be increased to Rs. 290 per quintal.” 

This is a hike of Rs 5 per quintal in the FRP for sugarcane from Rs 285 per quintal in August last, which is a Rs 10 increase from Rs 275 per quintal fixed in 2019-2020.

The announcement comes amid continuing farmers’ protest, and recent agitation in Punjab demanding a hike in sugarcane prices.

The Punjab government, after meetings with the protesting farmers, increased the sugarcane price in the state to Rs 360 per quintal, giving a raise of Rs 35 per quintal. The decision was accepted by the farmers. 

On Wednesday morning, Congress General Secretary Priyanka Gandhi slammed the Uttar Pradesh government for not increasing sugarcane prices. 

Goyal said dues of sugarcane farmers used to be higher during previous governments, and defended Chief Minister Yogi Adityanath, saying he acted firmly on the issue. 

Asked about the Punjab government decision, he said it is a state issue. 

“Uttar Pradesh or Punjab, what prices they decide is a state issue. The FRP is decided by the Centre,” he said. 

On whether the hike will impact sugar prices, the minister said, “Not necessarily.”

“…Since we are also giving support through ethanol production, supporting export… earlier we used the buffer stocks… We don’t see at present any reason for increasing sugar prices. I have not seen any increase in sugar prices in the domestic market,” Goyal added. 

(EW Correspondent)