CCEA approves the highest-ever FRP of Rs 290 per quintal for sugarcane farmers | Daily Current Affairs 2021

CCEA approves the highest-ever FRP of Rs 290 per quintal for sugarcane farmers

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FRP for Sugarcane

FRP for Sugarcane: The Cabinet Committee on Economic Affairs (CCEA), on August 25, 2021, approved the highest ever fair & remunerative price (FRP) for sugarcane farmers.

Key Points:

  • The cost of production of sugarcane for the sugar season 2021-22 is Rs. 155 per quintal.
  • FRP of sugarcane for sugar season 2021-22 (October – September) has been increased at Rs. 290/- per quintal for a basic recovery rate of 10%.
  • This FRP of Rs. 290 per quintal at a recovery rate of 10% is higher by 87.1% over production cost, thereby giving the farmers a return of much more than 50% over their cost.
  • If recovery is less than 9.5%, then farmers will be given a FRP of Rs 275 per quintile.
  • The FRP has been determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders.

Benefits:

  • This approval is the highest ever FRP.
  • It is going to benefit 5 crore sugarcane farmers and their dependents.
  • It will also benefit 5 lakh workers who are employed in sugar mills and related ancillary activities.

What is Fair and remunerative price (FRP)?

  • FRP is the minimum price at which sugarcane is purchased by sugar mills from farmers.
  • This price is fixed by the Union government based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
  • It is determined under Sugarcane (Control) Order, 1966.
  • FRP is determined by considering various factors like cost of production, domestic & international prices, demand-supply situation, inter-crop price parity, etc.
  • This FRP is uniformly applicable all over the country.

Note: However, some states namely Haryana, Punjab, UP, Uttarakhand, and TN announce a State Advised Price, which is usually higher than the FRP.

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