The Union Cabinet chaired by Prime Minister (PM) Narendra Modi has given its approval to the following:
i. CCEA approves Rs 305 per quintal sugarcane FRP for the 2022-23 Sugar Season
ii.Approves India’s Updated Nationally Determined Contribution (NDC) to be communicated to the United Nations Framework Convention on Climate Change (UNFCCC)
CCEA Approves Sugarcane FRP of Rs 305 Per Quintal for 2022-23 Sugar Season
The Union Cabinet Committee on Economic Affairs (CCEA) chaired by PM Narendra Modi has approved the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2022-23 (October-September) at Rs. 305/qtl (quintal) for a basic recovery rate of 10.25%.
- The CCEA also announced a premium of Rs. 3.05/qtl for each 0.1% increase in recovery over and above 10.25%, and a reduction in FRP by Rs. 3.05/qtl for every 0.1% decrease in recovery.
i. This FRP of Rs. 305/qtl at a recovery rate of 10.25 % is higher by 88.3 % over the cost of production and ensures the farmers with a return of more than 50% over their cost.
- The FRP for sugar season 2022–23 is 2.6% higher than sugar season 2021–22.
ii.In a bid to protect the interests of sugarcane farmers (GannaKisan), the government has also decided that deductions will not be allowed for sugar mills when recovery is less than 9.5 %.
iii. In the following sugar season 2022-23, such farmers will receive Rs. 282.125/qtl for sugarcane, up from Rs. 275.50/qtl in the current sugar season 2021-22.
iv.For the sugar season 2022–2023, the A2 + FL cost of producing sugarcane (i.e., Actual Paid Out Cost plus Imputed Value of Family Labour) is Rs. 162/qtl.
What is FRP and Recovery Rate?
The FRP, or Fair and Remunerative Price, is the government-mandated price that mills must pay to farmers for sugarcane procured from them.
In India, the payment of FRP is governed by the Sugarcane Control Order, 1966, which mandates payment within 14 days of the date of delivery of the cane.
- The FRP is based on the recovery of sugar from cane.
- Mills can pay the FRP in instalments by entering into an agreement with farmers.
Sugar recovery is the percentage ratio of sugar produced to cane crushed.
- Higher recovery results in higher FRP and higher sugar production.
Salient Measures Taken by The Government for Sugar Sector in Recent Years:
i. Sugarcane FRP is fixed to ensure sugarcane growers receive a guaranteed price.
ii.In order to prevent a decline in ex-mill sugar prices and the accumulation of cane arrears, the government has also introduced the concept of the Minimum Selling Price (MSP) of sugar.
- MSP was initially fixed at Rs. 29/kg w.e.f June 7, 2018; revised to Rs. 31/kg w.e.f February 14, 2019.
iii. To allow sugar export, maintain buffer stocks, increase ethanol production capacity, and pay off farmers’ debts, sugar mills have received financial aid totaling more than Rs. 18,000 crore.
iv.Over the past 8 years, the government has boosted FRP by more than 34%.
- In the current sugar season of 2021-22, about 3,530 lakh tonnes of sugarcane worth Rs. 1,15,196 cr were purchased by sugar mills, which is an all-time high.
v.India is the largest producer and second largest exporter of sugar in the world.
- India has surpassed Brazil in the sugar production in the current sugar season 2021-22.
vi.In the 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.
Cabinet Approves India’s Updated NDC to Be Communicated to UNFCCC
The Union Cabinet chaired by the PM Narendra Modi, has approved India’s updated Nationally Determined Contribution (NDC) to be communicated to the United Nations Framework Convention on Climate Change (UNFCCC).
- The updated NDC aims to increase India’s contributions to the Paris Agreement’s goal of strengthening the global response to the threat of climate change.
- This will also assist India in establishing low-emission growth pathways.
PM Narendra Modi announced stepping up India’s climate action through five nectar elements known as “Panchamrit“ at the 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC), held in Glasgow, United Kingdom, in November 2021.
- The “Panchamrit,” which was unveiled at COP26, is translated into enhanced climate targets in India’s updated NDC.
The five aspects of India’s climate change efforts include a target of achieving 500 GW (gigawatts) of non-fossil energy capacity by 2030 and meeting 50% of its energy needs with Renewable Energy (RE) by 2030.
- India also plans to lower the economy’s carbon intensity to below 45% by 2030 and the total projected carbon emissions by 1 billion tonnes.
- Additionally, India pledges to attain net zero carbon emissions by 2070.
Prior to this, on October 2, 2015, India submitted its Intended Nationally Determined Contribution (INDC) to the UNFCCC.
India’s Commitments Under Updated NDC
i. According to the updated NDC, India is now committed to reaching about 50% of the total installed capacity of electric power from non-fossil fuel-based energy sources by 2030 and to reduce the emissions intensity of its Gross Domestic Product (GDP) by 45% by 2030, compared to 2005 levels.
ii.India’s updated NDC has been developed after evaluating national conditions and the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).
iii. The updated framework will be linked to many other government measures, such as tax breaks and incentives like the Production Linked Incentive (PLI) scheme to promote manufacturing and the use of RE.
iv.India’s updated NDC will be implemented over the period 2021–2030 through the programmes and initiatives of the relevant Ministries/Departments and with the necessary assistance from the States/Union Territories.
v.The updated NDC serves as the roadmap for India’s transition to cleaner energy from 2021 to 2030.
- Indian Railways alone will reduce emissions by 60 million tonnes annually if it achieves its Net Zero target by 2030.
- In a similar manner, India’s massive LED bulb campaign is cutting emissions by 40 million tonnes annually.
- At COP 26, PM of India Narendra Modi launched a ‘One-Word Movement’—LIFE (L, I, F, E, i.e., Lifestyle For Environment), which envisions living a lifestyle that is in line with and does not harm planet Earth.
- The NDC for India does not commit the country to any sector-specific mitigation obligations or actions.
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