Government approves determination of Fair and Remunerative Price of sugarcane
The Central Government has increased the Fair and Remunerative Price (FRP) of sugarcane to an all-time high.
- Recently, the Center has increased the Fair and Remunerative Price (FRP) of sugarcane to Rs 290 per quintal for the year 2021-22 for the basic recovery rate of 10%.
- It is to be known that Fair and Remunerative Price (FRP) is the minimum price payable by sugar mills to sugarcane growers. FRP is prescribed under the Sugarcane (Control) Order, 1966.
- The FRP is determined on the basis of the recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with the State Governments and other stakeholders.
- Recovery rate is the quantity of sugar obtained from sugarcane. The higher the quantity of sugar obtained from sugarcane, the higher the price it fetches in the market.
- However, the government has no plans to increase the minimum support price of sugar accordingly, which currently stands at Rs 31 per kg.
Significance:
- The production cost of sugarcane for the sugar season of 2021-22 is Rs 155 per quintal. Thus an FRP of Rs 290 per quintal also ensures a return of more than 50% to the farmers on their cost.
- Other measures taken by the government to ensure higher returns and timely payments to farmers include:
- Financial assistance is being provided to sugar mills for increasing ethanol production and e-promotion to increase revenue.
- The export of sugar has improved the liquidity of sugar mills. This has enabled them to pay the farmers arrears of sugarcane.
Source – The Hindu
