To safeguard farmer interests and boost Northeast infrastructure, the CCEA, chaired by PM Modi, approved a sugarcane FRP hike to ₹355/quintal for 2025-26 and cleared a ₹22,864 crore greenfield highway from Shillong to Silchar.
The new FRP of ₹355 per quintal is applicable for a basic recovery rate of 10.25%, representing a 4.41% increase over the current season.
The approved price is 105.2% higher than the sugarcane production cost of ₹173 per quintal, ensuring better returns for farmers.
The government will add a premium of ₹3.46 per quintal for every 0.1% recovery above 10.25% and deduct the same amount for lower recovery.
However, the government will ensure a minimum price of ₹329.05 per quintal to protect farmers whose produce has less than 9.5% recovery.
This decision impacts nearly five crore sugarcane farmers and their dependents, and supports over five lakh mill workers.
It follows recommendations by the Commission for Agricultural Costs and Prices (CACP) after consulting state governments and stakeholders.
As of 28 April, sugar mills have cleared 99.92% of cane dues for the 2023-24 season and paid 87% of dues for the ongoing 2024-25 season.
The Cabinet also approved a ₹22,864 crore high-speed greenfield highway project spanning 166.80 km from Mawlyngkhung near Shillong to Panchgram near Silchar.
Of this, 144.8 km lies in Meghalaya and 22 km in Assam.
Built under the hybrid annuity mode, the four-lane access-controlled corridor will drastically cut travel time between Guwahati and Silchar, while also boosting access to Tripura, Mizoram, Manipur, and Assam’s Barak Valley.
The highway will enhance logistical efficiency and pass through key cement and coal production regions in Meghalaya, promoting industrial growth.
It is also set to encourage tourism, connecting scenic sites in the Northeast to major airports in Guwahati, Shillong, and Silchar.
The project supports inter-city travel between Guwahati, Shillong, and Silchar, while aligning with the PM Gati Shakti National Master Plan.
Once completed, the corridor will play a crucial role in regional economic integration and promote the government’s Atmanirbhar Bharat vision through employment generation and infrastructure development.
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