Government approves determination of Fair and Remunerative Price of sugarcane

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Government approves determination of Fair and Remunerative Price of sugarcane

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

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