Cabinet hikes FRP of Sugarcane by Rs.10 to Rs.285/quintal 


NewDelhi : The union cabinet on Wednesday hiked FRP (Fair and Remunerative price) of sugarcane or the minimum price sugar mills pay to the farmers by Rs.10 to Rs.285 per quintal for the 2020-21 sugar season starting from October. The Commission for Agricultural Costs and Prices (CACP) has recommended hike in sugarcane FRP.

“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September) on the recommendations of the Commission for Agricultural Costs and Prices (CACP)”said a government release.

As per the decision..

i) FRP of sugarcane for 2020-21 sugar season at Rs.285/- per quintal for a basic recovery rate of 10%;

ii) a premium of Rs. 2.85 per quintal for every 0.1% increase above 10% in the recovery; and

iii) reduction in FRP by Rs. 2.85 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10% but above 9.5 percent. However, for mills having recovery 9.5 % or below, the FRP is fixed at Rs 270.75 per quintal.

The determination of FRP will be in the interest of sugarcane growers keeping in view their entitlement to a fair and remunerative price for their produce.

The ‘Fair and Remunerative price’ of sugarcane is determined under Sugarcane (Control) Order, 1966. This will be uniformly applicable all over the country.

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