Cabinet increases Fair and Remunerative Price (FRP) of sugarcane for 2020-21 sugar season

Keeping in view the interest of sugarcane farmers, the Cabinet approved hike in the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2020-21 at Rs. 285/- per quintal for a basic recovery rate of 10% which stood ast Rs.275/quintal; the cabinet also approved providing a premium of Rs. 2.85/quintal for recovery at 11%.

The Government with a view to protect interest of farmers has also decided that, where recovery is 9.5% or below such farmers will get Rs. 270/quintal for sugarcane in place of Rs. 261.25/qtl in the current season. The FRP so approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2020-21 (starting w.e.f. 1st October, 2020) by the sugar mills.

The “Fair and Remunerative price” of sugarcane is determined under Sugarcane (Control) Order, 1966.

The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crore sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.

The FRP has been determined on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stake-holders. Recommended FRP has been arrived at by taking into account various factors such as cost of production, overall demand-supply situation, domestic and international prices, inter-crop price parity, terms of trade prices of primary by-products, and likely impact of FRP on general price level and resource use efficiency.

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