New Delhi/UNI: Prime Minister Narendra Modi on Thursday hailed the cabinet decision for hiking sugarcane prices and said, "This step will benefit the crores of our sugarcane producing farmers".

On February 21, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved a hike in sugarcane prices, known as the Fair and Remunerative Price (FRP), for the fiscal year 2024–25.

"Our government is committed to fulfill every resolution related to the welfare of our farmer brothers and sisters across the country.

"A historic increase in the price of sugarcane purchases has been approved. This step will benefit crores of our sugarcane producing farmers," PM Modi stated in a social media post on his official X account.

The new FRP is set at Rs 340 per quintal of sugarcane, up from the existing Rs 315 per quintal, marking an 8 per cent increase from the previous year. This rate applies to a cane recovery rate of 10.2 per cent.

The farmers will receive a premium of Rs 3.32 per quintal for every 0.1 percentage point increase above the specified recovery rate, incentivizing efficient cane production.

The revised FRP will be applicable on October 1, 2024.