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.
- 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.
- 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.