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The Union Cabinet chaired by Prime Minister (PM) Narendra Modi has given its nod to the following:
i. CCEA approves Rs 305 per quintal sugarcane FRP for 2022-23 sugar season
ii.Approves India’s updated Nationally Determined Contribution (NDC) to be reported 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 Commission of the Cabinet of Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the Fair and Remunerative Price (FRP) of sugarcane for the 2022-23 (October-September) sugar season at Rs. 305/qtl (quintal) for a base recovery rate of 10.25%.
- The CCEA also announced a premium of Rs. 3.05/qtl for every 0.1% increase in recovery 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 88.3% higher than the cost of production and guarantees farmers a return of more than 50% on their cost.
- The FRP for the 2022-23 sugar season is 2.6% higher than the 2021-22 sugar season.
ii.In a bid to protect the interests of sugarcane farmers (GannaKisan), the government has also decided that no deductions will be allowed to sugar mills where the recovery is less than 9.5%.
iii. In the next sugar season 2022-23, these farmers will get Rs. 282,125/qtl for sugarcane, up from Rs. 275.50/qtl in the current sugar season 2021-22.
iv.For the 2022–2023 sugar season, the A2 + FL cost of producing sugarcane (ie, the actual cost paid plus the 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 millers must pay farmers for sugarcane purchased 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 cane delivery.
- FRP is based on the recovery of sugar from cane.
- Mills can pay the FRP in installments by signing an agreement with farmers.
Sugar recovery is the percentage ratio between sugar produced and crushed cane.
- Higher recovery results in higher FRP and higher sugar production.
outgoing Measures taken by The Government for Sugar sector in The last years:
i. Sugarcane FRP is set to ensure that sugarcane growers receive a guaranteed price.
ii.In order to avoid fall in ex-mill sugar prices and accumulation of cane arrears, the government has also introduced the concept of Minimum Selling Price (MSP) for sugar.
- MSP was initially fixed at Rs. 29/kg wef June 7, 2018; revised to Rs. 31/kg wef February 14, 2019.
iii. To enable export of sugar, maintain buffer reserves, increase ethanol production capacity and pay farmers’ debts, sugar mills have received financial assistance totaling over Rs. 18,000 million.
iv.Over the past 8 years, the government has increased the FRP by more than 34%.
- In the current sugar season 2021-22, about 3,530 lakh tonnes of sugarcane worth Rs. Sugar mills bought 1,15,196 cr, which is an all-time high.
v.India is the world’s largest producer and second largest exporter of sugar.
- India has overtaken Brazil in sugar production in the current 2021-22 sugar season.
wineIn the last 4 sugar seasons 2017-18, 2018-19, 2019-20 and 2020-21, about 6 Lakh Metric Tonnes (LMT), 38 LMT, 59.60 LMT and 70 LMT of sugar have been exported.
- Around 100 LMT of sugar has been exported till 01/08/2022 during the current sugar season 2021-22 and exports are likely to touch 112 LMT.
Click here to learn more about the importance of the sugar industry in India
The Cabinet approves India’s updated NDC for submission to the UNFCCC
The Union Cabinet chaired by Prime Minister Narendra Modi, has approved India’s Updated Nationally determined contribution (NDC) that will 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 help India establish low emission growth paths.
Prime Minister Narendra Modi announced the stepping up of 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 introduced at COP26, translates into improved climate targets in India’s updated NDC.
The five aspects of India’s climate change efforts include the goal of achieving 500 GW (gigawatts) of non-fossil energy capacity by 2030 and meeting 50% of its energy needs from Renewable Energies (RE ) by 2030.
- India also plans to reduce the carbon intensity of the economy below 45% by 2030 and total projected carbon emissions by 1 billion tonnes.
- In addition, India is committed to achieving net zero carbon emissions by 2070.
Prior to this, on 2 October 2015, India submitted its Intended National Contribution (INDC) to the UNFCCC.
India’s commitments Under Updated NDC
i. According to the updated NDC, India is now committed to achieving around 50% of total installed electricity capacity from non-fossil fuel energy sources by 2030 and to reduce intensity of emissions of its Gross Domestic Product (GDP) by 45%. % by 2030, compared to 2005 levels.
ii.India’s updated NDC has been developed after assessing 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 such as the Production Linked Incentive (PLI) scheme to promote the manufacture and use of RE.
iv.India’s updated NDC will be implemented during 2021-2030 through the programs and initiatives of the concerned Ministries/Departments and with necessary assistance from the States/Union Territories.
v.The updated NDC serves as a roadmap for India’s transition to cleaner energy from 2021 to 2030.
- Indian Railways alone will reduce emissions by 60 million tonnes per year if it achieves its Net Zero target by 2030.
- Similarly, India’s massive LED light bulb campaign is reducing emissions by 40 million tonnes annually.
- At COP 26, India’s Prime Minister Narendra Modi launched a ‘One Word Movement’: LIFE (L, I, F, E, i.e. Lifestyle For Environment), which envisages living a lifestyle of life that fits and does not harm the planet. land
- The NDC for India does not commit the country to any sector-specific mitigation actions or obligations.
Related Recent News:
In June 2022, the Union Cabinet approved a proposal to extend the mandate of the Union Government and special market Purpose vehicle (GeM-SPV) allow cooperatives as a buyer’s platform. This measure will support cooperatives to achieve competitive prices.
The Ministry of Commerce and Industry established the Government e Marketplace (GeM) to create an open and transparent procurement platform for government buyers.
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