Kolhapur: The central government has clarified that the fair and remunerative price (FRP) for sugarcane will be calculated based on the sugar recovery rate of the ongoing season, not the previous one, reported The Times of India.
The Ministry of Consumer Affairs, Food and Public Distribution issued a circular on July 10 to address the confusion around FRP calculation, following a request from the Maharashtra State Cooperative Sugar Factories Federation Limited on July 3.
The sugar recovery rate refers to the amount of sugar produced from one tonne of sugarcane. The Centre fixes the FRP each year based on recommendations from the Commission for Agricultural Costs and Prices (CACP). The base FRP is set at a recovery rate of 10.25%, with additional payments made for higher recovery rates.
However, sugar mills had been using the previous year’s recovery rate to determine FRP, instead of the current season’s actual rate.
As per the Times of India, Sanjay Khatal, Managing Director of the Maharashtra State Cooperative Sugar Factories Federation said, “We had sought a clarification on whether to calculate FRP based on the sugar recovery rate for the previous year or the ongoing season, and Centre has provided its clarification. Now, the mills will have to pay the base FRP, which is calculated as per the average FRP of a particular region.”
The sugar recovery rate at the end of the season should, however, be the basis for further payment if applicable. The over and above FRP amount will be paid as a premium to the farmers at the end of the season.
According to Khatal, sugar millers do pay the FRP based on the base recovery rate, but for higher recovery rates, they can pay the additional amount in one or two installments, rather than upfront.
Farmer leader Raju Shetti criticized the decision, saying it favors millers over farmers. “Farmers grow sugarcane over many months and then wait even longer for the crushing season to end before they are fully paid,” he said.
