In another farmer’s friendly step, Government approves Fair and Remunerative Price of sugarcane payable by Sugar Mills to sugarcane farmers for sugar season 2022-23


Keeping in view interest of sugarcane farmers (Ganna Kisan), the Cabinet Committee on Economic Affairs chaired by Hon’ble Prime Minister Shri Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2022-23 (October – September) at Rs. 305/qtl for a basic recovery rate of 10.25%, providing a premium of Rs. 3.05/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by Rs. 3.05/qtl for every 0.1% decrease in recovery. However, the Government with a view to protect interest of sugarcane farmers has also decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs. 282.125/qtl for sugarcane in ensuing sugar season 2022-23 in place of Rs. 275.50/qtl in current sugar season 2021-22.


The A2 + FL cost of production of sugarcane (i.e actual paid out cost plus imputed value of family labour) for the sugar season 2022-23 is Rs. 162/qtl. This FRP of Rs. 305/qtl at a recovery rate of 10.25% is higher by 88.3% over cost of production, thereby ensuring the promise of giving the farmers a return of more than 50% over their cost. The FRP for sugar season 2022-23 is 2.6% higher than current sugar season 2021-22.


Due to proactive policies of Central Government ,sugarcane cultivation and sugar industry has come a long way in past 8 years and now reached a level of self-sustainability. This is outcome of timely government interventions and collaboration with sugar industry, State Governments, various departments of Central Government as well as farmers. Salient measures taken by the Government for Sugar Sector in recent years are as under:


  • FRP of sugarcane is fixed to ensure a guaranteed price to sugarcane growers.
  • Government has increased FRP by more than 34% in past 8 years.
  • Government has also introduced the concept of Minimum Selling Price (MSP) of sugar to prevent fall in ex-mill prices of sugar & accumulation of cane arrears (MSP was fixed initially at ₹ 29/ kg  w.e.f  07-06-2018; revised to ₹ 31/kg w.e.f. 14-02-2019).
  • Financial assistance of more than ₹ 18,000 crore extended to sugar mills to facilitate export of sugar, for maintaining buffer stocks, to augment ethanol  production capacity & for clearance of farmers’ dues.
  • Diversion of surplus sugar for production of ethanol led to improved financial conditions of sugar mills. As a result, they are able to clear cane dues early.
  • Due to exports and diversion of sugar to ethanol, sugar sector has become self-sustainable and budgetary support for export and buffer are not required to improve liquidity of mills.


Further, due to various others measures taken for the Sugar Sector during past few sugar seasons which inter-alia included introduction of high yielding varieties of sugarcane, adoption of drip irrigation system, modernization of sugar plant and other R&D activities, the area of sugarcane cultivation, production of sugarcane, cane crushed, sugar production & its recovery percentage and the payment to farmers have increased considerably.


Government committed to increase income of farmers:


Decision will benefit 5 crore sugarcane farmers (Ganna Kisan) and their dependents, as well as 5 lakh workers employed in the sugar mills and related ancillary activities. 9 years back, FRP was only Rs. 210/ qtl in sugar season 2013-14 & only about 2397 LMT of sugarcane was purchased by sugar mills. Farmers were getting only about Rs. 51,000 cr from sale of sugarcane to sugar mills. However, in past 8 years Government has increased FRP by more than 34%. In the current sugar season 2021-22, about 3,530 lakh tons of sugarcane of worth Rs. 1,15,196  cr was purchased by sugar mills, which is at all time high.


Keeping the increase in the acreage & expected production of sugarcane in the ensuing sugar season 2022-23, more than 3,600 lakh tons of sugarcane is likely to be purchased by sugar mills for which the total remittance to the sugarcane farmers is expected to be more than  Rs. 1,20,000 crore. The Government through its pro-farmer measures will ensure that sugarcane farmers get their dues in time.


In the previous sugar season 2020-21, about Rs. 92,938 crores cane dues were payable, out of which Rs. 92,710 crore has been paid & only Rs. 228 crore arrears are pending. In the current sugar season 2021-22, out of cane dues payable of Rs. 1,15,196 crores about Rs. 1,05,322 crores cane dues have been paid to farmers, as on 01.08.2022; thus, 91.42% cane dues have been cleared which is higher than earlier seasons. 





India – largest producer & second largest exporter of sugar in the world:


India has surpassed Brazil in the sugar production in the current sugar season. With the increase in the production of sugar in past 8 years, India apart from meeting its requirement for domestic consumption has also consistently exporting sugar which has helped in reducing our fiscal deficit.  In last 4 sugar seasons 2017-18, 2018-19, 2019-20 & 2020-21, about 6 Lakh Metric Tonne (LMT), 38 LMT, 59.60 LMT & 70 LMT of sugar has been exported. About 100 LMT of sugar has been exported till 01.08.2022 in the current sugar season 2021-22  & exports likely to touch 112 LMT.


Sugarcane farmers & sugar industry now contributing in energy sector:


India’s 85% requirement of crude oil is met through imports. But with a view to reduce import bill on crude oil, to reduce pollution & to make India Atmanirbhar in petroleum sector, Government is pro-actively moving ahead to increase production & blending of ethanol with petrol under the Ethanol Blended with Petrol programme. Government is encouraging sugar mills to divert excess sugarcane to ethanol which is blended with petrol, which not only serves as a green fuel but also saves foreign exchange on account of crude oil import. In sugar seasons 2018-19, 2019-20 & 2020-21, about 3.37 LMT, 9.26 LMT & 22 LMT of sugar has been diverted to ethanol. In current sugar season 2021-22, about 35 LMT of sugar is estimated to be diverted & by 2025-26 more than 60 LMT of sugar is targeted to be diverted to ethanol, which would address the problem of excess sugarcane as well as delayed payment issue because farmers would get timely payment.


Government has fixed target of 10% blending of fuel grade ethanol with petrol by 2022  & 20% blending by 2025.


Till year 2014, ethanol distillation capacity of molasses based distilleries was only about 215 cr litres. However, in past 8 years due to the policy changes made by the Government, the capacity of molasses based distilleries have increased to 595 cr litres. Capacity of grain based distilleries which were about 206 cr litres in 2014 have now increased to 298 cr ltrs. Thus, the overall capacity of ethanol production has doubled in past 8 years from 421 cr ltrs in 2014 to 893 cr ltrs in July’ 2022. Government is also extending interest subvention to sugar mills/ distilleries for loans availed from banks for augmentation of ethanol production capacities. About 41,000 cr investment is being made in ethanol sector which will create employment opportunities in rural areas.  


In ethanol supply year (ESY) 2013-14, supply of ethanol to OMCs was only 38 crore litres with blending levels of only 1.53 %. Production of fuel grade ethanol and its supply to OMCs has increased by 8 times from 2013-14. In ethanol supply year 2020-21 (December – November), about 302.30 cr ltrs of ethanol has been supplied to OMCs thereby, achieving 8.1% blending levels. In the current ESY 2021-22, we have been able to achieve 10.17% blending levels. More than 400 cr ltrs of ethanol likely to be supplied by sugar mills/ distilleries for blending with petrol in the current ESY 2021-22 which will be 10 times in comparison to supplies in year 2013-14.  


Sugar industry becoming self-sustainable:


Earlier, sugar mills were dependent primarily on sale of sugar to generate revenues. Surplus production in any season adversely affects their liquidity leading to accumulation of cane price arrears of farmers. Government interventions were made from time to time to improve their liquidity. However, in past few years due to Central Government’s proactive policies including encouragement to export surplus sugar & to divert sugar to ethanol, the sugar industry has now become self-sustainable. 


Since, 2013-14 about  Rs. 49,000 crore revenue generated by sugar mills from sale of ethanol to Oil Marketing Companies (OMCs). In the current sugar season 2021-22, about Rs. 20,000 cr revenue is being generated by sugar mills from sale of ethanol to OMCs; which has improved liquidity of sugar mills enabling them to clear  cane dues of farmers . Revenue from sale of sugar & its by-products, ethanol supplies to OMCs, power production from bagasse based cogeneration plants & sale of potash produced from press mud   has improved topline & bottom line growth of sugar mills.


The measures taken by the Central Government and FRP enhancement have encouraged farmers to cultivate sugarcane and facilitated continued operation of sugar factories for domestic manufacturing of sugar. Due to proactive policies made by the Government for sugar sector,  India is also now becoming atmanirbhar in energy sector.


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National Fish Farmers Day to be celebrated tomorrow


National Fisheries Development Board, Ministry of Fisheries, Animal Husbandry and Dairying, Government of India is celebrating the National Fish Farmers Day on 10th July 2022 virtually at NFDB Hyderabad from 10.30 am  to 12.45 pm  tomorrow. Dr. Sanjeev Kumar Balyan , Minister of State for Fisheries, Animal Husbandry & Dairying and Dr. L. Murugan, Minister of State for Fisheries, Animal Husbandry and Dairying will grace the occasion.


Around 700 fish farmers,  aquapreneurs  & fisher folks, professionals, officials and scientists from across the nation are expected to participate in the event. During the event, launching  of 4 Nos of Posters as an outreach on Domestic Fish Consumption and sustainable production shall be released. 2 Nos shall be released on  “Fish for Motherhood” & “Fish Nutrients and their Wellness Benefits” by  Dr. Sanjeev Kumar Balyan, Union Minister for Fisheries, Animal Husbandry and Dairying and 2 Nos of posters shall be released on “Sustainable Fishing Practices” & “State Fishes of India” by Dr. L.Murugan,  Minister of State for Fisheries, Animal Husbandry and Dairying.




NFDB Lab project on “ Assessment of pathogenic microorganisms along with nutrient and residual contaminant profiling in fish and aqua Feeds” will be launched by Shri Jatindra Nath Swain, IAS Secretary(Fisheries). During the program, interaction with progressive fish farmers under PMMSY scheme, fish farmers availing quality seed from NFFBB giving feedback on growth performance of improved seed varieties and interaction with North East fish farmers to share their prospects in fisheries sector is also planned. The entire program shall be livestreamed for reaching out to more public across the country.


National Fish Farmers Day is celebrated on 10th July 2022 every year to demonstrate solidarity with all fisher folk, fish farmers and concerned stakeholders throughout the Country. It is 65th National Fish Farmers Day being celebrated across the Country. Every year, this annual event is celebrated to commemorate Professor Dr. Hiralal Chaudhury and his colleague Alikunhi for their contribution in achieving the successful induced breeding of major carps on 10th July, 1957 at Angul in Odisha for the first time in the country through administration of carp pituitary hormone extract in the breeding of major carps. The technology was later on standardized and fine-tuned by developing synthetic hormone for quality seed production across the country. This pioneering work of induced breeding over the years has transformed the growth of aquaculture sector from traditional to intensive aquaculture practices and led to success of modern aquaculture industry.


The Government of India is in the forefront in transforming the fisheries sector and bringing about economic revolution through Blue Revolution in the country. The sector envisioned to increase the farmers’ income through enhancement of production and productivity, improving the quality and reduction of waste.  Taking into account the Centrally Sponsored Scheme “Blue Revolution” – Integrated Development and Management of Fisheries which was launched in 2016 and had made vital contributions towards the development of the sector and during 2020, Hon’ble Prime Minister launched the “Pradhan Mantri Matsya Sampada Yojana (PMMSY) with a budget of over Rs. 20,050 crores for a period of five years. PMMSY aims to achieve fish production of 22 MMT from the current 13.76 MMT by 2024-25 and create an additional employment opportunity to about 55 lakh people through this sector. Also the scheme provides thrust for infusing new and emerging technologies in fisheries and aquaculture while creating a conducive environment for private sector participation, development of entrepreneurship, business models, promotion of ease of doing business, innovations and innovative project activities including start-ups, incubators etc.


The Fisheries and Aquaculture Infrastructure Development Fund (FIDF) scheme was started in 2018-19 with a budget of Rs. 7,522.48 crores, which is also continuing presently. FIDF will specifically cater to creation of fisheries infrastructure facilities both in marine and inland fisheries sectors to augment the fish production to achieve the target. Projects under the FIDF are eligible for loan up to 80% of the estimated/actual project cost.


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Unique ID for Farmers


Ministry of Agriculture& Farmers Welfare, Government of India is in the process for creating unique ID of farmers of the country. The unique identifier of the farmer will link the farmer profile with all the agricultural schemes, which have been availed by the farmer. Some of the benefits to the Farmers are given below:


  1. Provisioning Farmer’s verification through e- Know Your Farmer (e-KYF) which would eliminate the need of re-submitting physical documents to different departments for availing benefit(s) under different schemes.
  2. Access to field based & customised advisories.
  3. Ease of accessing the damage to crops due to extreme weather condition.




As on 09.12.2021, the database of farmers registered under PM-KISAN includes 11.64 Crores farmers including the state of Tamil Nadu wherein, 47.82 lakhs farmers have been registered.




This information was given by Union Minister of Agriculture and Farmers Welfare Shri Narendra Singh Tomar in a written reply in Lok Sabha today.




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Urdu







Nearly 11.57 Lakh farmers benefitted through paddy procurement in KMS 2021-22

The Department of Food and Public Distribution under Ministry of Consumer Affairs, Food and Public Distribution has procured over 209.52 LMT of Paddy in KMS 2021-22 till 08.11.2021 in the procuring States/UTs of Chandigarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Uttar Pradesh, Uttrakhand, Telangana, Rajasthan, Kerala, Tamil Nadu and Bihar.

As a result of which about 11.57 Lakh farmers have been benefitted with MSP value of Rs. 41,066.80 crore.

The paddy procurement is progressing smoothly in Kharif Marketing Season (KMS) 2021-22 at MSP from farmers, as was done in previous years.

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Canada – Helping farmers to reduce GHGs and improve resiliency to climate change

Sherbrooke, Québec – Agriculture and Agri-Food Canada

Today, the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, launched a call for proposals for the On-Farm Climate Action Fund, a new fund under Agricultural Climate Solutions. Starting this year and until 2024, the $200-million Fund will provide direct support to farmers to adopt beneficial management practices that store carbon and reduce greenhouse gas (GHG) emissions in three target areas: cover cropping, nitrogen management, and rotational grazing practices. These three on-farm actions not only reduce GHG emissions but also offer farmers a cost-effective solution to improve soil health and achieve other environmental benefits.

This year has demonstrated the extraordinary challenges farmers face on the front lines of climate change. Extreme weather events, like this year’s drought, and other environmental impacts like challenges related to water availability and quality, soil health and biodiversity are projected to become more severe and costly for the sector in the coming decades. Farmers are already innovating and adopting more sustainable practices and technologies to improve their climate resiliency.

The Fund will follow an outcome-based approach in order to maximize new GHG emissions reductions. Activities supported through the Fund are expected to reduce GHG emissions by up to 2 million tonnes by 2024, and by 1 million tonnes per year ongoing, compared to current projections, and bring a total of 792,000 hectares of land under improved management practices.

Starting today, the On-Farm Climate Action Fund is seeking proposals from potential delivery partners to redistribute the funds to farmers undertaking eligible activities. Potential delivery partners for the On-Farm Climate Action Fund could include producer groups and associations, commodity organizations, Indigenous groups, non-governmental organizations, and provincial or territorial Crown corporations, among others.

Delivery partners will need to propose a delivery plan that would best achieve the targeted outcomes.

Direct support to farmers will fall under these target areas:

Cover cropping: for example, payment-per-acre to cover adoption or related costs such as seeds and equipment. Cover crops are plants, like clover and alfalfa, that are planted to cover the soil rather than for the purpose of being harvested.
Nitrogen management: for example, agronomic services to develop farm-specific nutrient management plans, equipment modifications for fertilizer application in fields, and soil sampling and analysis.
Rotational grazing: for example, agronomic services to develop grazing management plans, interior cross fencing, water system infrastructure, legume and forage seeds. Rotational grazing is the practice of containing and moving livestock through pasture to allow forage plants to recover, deepen their root systems and improve soil health.

To request the call for proposals form, please email aafc.acs-sac.aac@agr.gc.ca. The application process will run until September 26, 2021.

The Government of Canada is committed to working with Canadian producers as they help Canada meet its national emissions reduction targets, protect the environment, and build the strength and competitiveness of our agricultural businesses and economy.

“This year has shown us how much Canadian farmers are now seeing and experiencing the effects of a changing climate on a daily basis. With today`s announcement, our Government is helping farmers to be more resilient to changes in climate and to contribute to reducing the greenhouse gases that cause climate change.”

–       The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food.

“The fight against climate change isn’t only about reducing emissions, but adapting to changes that are already set in motion and caused by extreme weather events such as wildfires, flood, and droughts. Given the importance of the agriculture and agri-food sector, it is clear that more ambitious actions are needed to help build climate resilience. Through sustainable on-farm practices, the Government of Canada is investing in our farmers to support safer communities, a healthier environment, and a stronger economy as we continue to build resilience from coast to coast to coast.”

–       The Honourable Jonathan Wilkinson, Minister of Environment and Climate Change.

“The impact of the current, devastating drought conditions many Canadian farmers and ranchers are enduring each and every day is another example of our farmers battling on the front-lines of climate change. Canadian farmers are deeply invested in not only mitigating climate change impacts but, at the same time, pushing to unleash our sector’s potential as a natural climate solutions provider. The Climate Action Fund will support farmers in their sustainability efforts and assist in adopting on-farm practices that have the potential to enhance our sector’s capabilities as a net carbon sink for Canada.”

–       Mary Robinson, President of the Canadian Federation Of Agriculture.

“This season has been devastating for many farmers across Canada, with severe heat, drought and fires; impacts that we know will only become more severe and more frequent because of climate change. The On-Farm Climate Action Fund empowers us to do something concrete on our farms to adapt to extreme weather and jump-start emission reductions. This new program is a first step in helping farmers meet the immense challenge of climate change.”

–       Karen Ross, Director, Farmers for Climate Solutions.

“Today’s announcement, like the investments being made by several countries in this area, is a step in the right direction. Climate change will have major consequences for the agricultural sector. Producers are already taking proactive steps, but they need additional support in the face of the challenges they are experiencing and will continue to face. As such, the measures announced by the government will be welcomed.”

–       Marcel Groleau, General President, Union des producteurs agricoles.

The On-Farm Climate Action Fund is one of many important new initiatives being undertaken to promote improving long term climate resiliency in the agriculture sector, and is part of Canada’s Strengthened Climate Plan to reduce greenhouse gas emissions by 40-45 per cent below 2005 levels by 2030, and towards net-zero emissions by 2050. Canada’s agriculture currently accounts for 10 percent of Canada’s GHG emissions and has the potential to play a key role in reducing national GHG emissions and improving climate resiliency.

The Fund will support expanding, sustaining and validating adoption of the identified beneficial management practices to enable GHG emissions reductions and/or carbon sequestration that would not have occurred otherwise. 

Funding for this new $200 million On-Farm Climate Action Fund was first announced in Budget 2021. 

The Fund is part of the Government’s Agricultural Climate Solutions (ACS) initiative, which is under the umbrella of the $4 billion Natural Climate Solutions Fund, which includes Environment and Climate Change Canada’s ten-year $631 million Nature Smart Climate Solutions Fund (NSCSF) and Natural Resources Canada’s $3.2 billion Two Billion Trees program. The NSCSF support projects that restore, enhance and conserve wetlands, peatlands, grasslands, and forests to capture and store carbon. These ecosystems are also critically important habitats for Canada’s wildlife including migratory birds and species at risk. 

In the past year, the Government of Canada has announced $550-million over 10 years to help Canada’s agriculture and agri-food sector meet our emission targets and capture new opportunities in the green economy, including:

$200 million for the Agricultural Climate Solutions – On Farm Climate Action Fund;
$185 million for the Agricultural Climate Solutions – Living Lab program that is establishing a Canada-wide network of regional collaborations led by farmers and including scientists and other stakeholders to co-develop and implement farming practices to tackle climate change; and
$165.7 million for the Agricultural Clean Technology Program to support research, development and adoption of clean technologies. 

Canada’s Changing Climate Report, released by Environment and Climate Change Canada (ECCC) in 2019, indicates that warming in Canada is approximately double the global average. 

Funding for this new $200 million On-Farm Climate Action Fund was first announced in Budget 2021.

Canada’s Changing Climate Report, released by Environment and Climate Change Canada (ECCC) in 2019, indicates that warming in Canada is approximately double the global average.

Oliver Anderson

Director of Communications

Office of the Minister of Agriculture and Agri-Food

oliver.anderson@agr.gc.ca

613-462-4327