- The Central government has hiked the fair and remunerative price (FRP) for Sugarcane by ₹5 a quintal for the 2021-22 sugar season, which runs from October to September.
- This will put the national fair and remunerative price to ₹290 a quintal that will apply for a recovery rate of 10%.
- Though the union government has increased Fair and Remunerative Prices for Sugarcane, it refused to hike the minimum price that sugar mills can sell the processed sugar, citing consumer interests.
About Fair and Remunerative Prices for Sugarcane
- The central government announced fair and Remunerative Prices for Sugarcane based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) in consultation with the State Governments and after taking feedback from associations of the sugar industry.
- The Cabinet Committee on Economic Affairs announces the Fair and Remunerative Prices for Sugarcane at the union government level.
- Cabinet Committee on Economic Affairs is chaired by Prime Minister.
- Sugarcane (Control) Order, 1966: was amended in 2009 which replaced the Statutory Minimum Price (SMP) of sugarcane with the ‘Fair and Remunerative Price (FRP)’ of sugarcane.
- The methodology used for determining Fair and Remunerative Prices for Sugarcane: The Commission for Agricultural Costs and Prices (CACP) recommends the Fair and Remunerative Prices for Sugarcane by taking into account various factors like
- Cost of production,
- Demand-supply situation,
- Domestic & international prices,
- Inter-crop price parity etc.
- Benefits: Fair and Remunerative Prices for Sugarcane assures margins to farmers, irrespective of whether sugar mills generate a profit or not.
State Advised Prices (SAP) by sugarcane producing states
- The State Advised Prices (SAP) are announced by key sugarcane-producing states which are generally higher than FRP.
- Key sugar cane-producing states such as Punjab, Haryana, Uttarakhand, UP, and TN announce a State Advised Price (SAP).