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"Cabinet Committee on Economic Affairs has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2023-24 (October - September) at Rs 315 per quintal for a basic recovery rate of 10.25 percent. It has also been approved to provide a premium of Rs 3.07 per quintal for each 0.1 percent increase in recovery over and above 10.25 percent, and reduction in FRP by Rs 3.07 per quintal for every 0.1 percent decrease in recovery," a statement read.

The timing of this decision is crucial as it aligns with the upcoming sugar season starting in October. According to CNBC Awaaz, this new price hike will benefit over 50 million sugarcane farmers and others dependent on it. About 5 lakh farmers are involved in sugar mills and related allied activities.

FRP or the fair and remunerative price is the minimum price at which sugarcane is bought from farmers. Farmers directly benefit from an increase in FRP as they get higher prices for selling sugarcane. The FRP is recommended by the Commission of Agricultural Costs and Prices (CACP) to the government.