New Delhi: Central government keeps Fair and Remunerative Price (FRP) of sugarcane unchanged at Rs 275 per quintal for 2019-20 crushing season for a basic recovery rate of 10 per cent.
Earlier, the Commission for Agricultural Costs and Prices has recommended keeping the FRP unchanged at Rs 275 per quintal for 2019-20 season.
Sugar mills in India have been claiming they are finding it difficult to pay FRP of sugarcane as the average production cost of sugar is 35 to 36 rupees per kg as against the MSP of 31 rupees per kg, and due to which they are bearing looses. And they were in fear that if government hikes FRP for 2019-20 season, then it will add burden on them as there is a mismatch between the production cost and sale price of sugar.
As per the latest report, sugar mills in India owe whopping Rs 15,222 crore for the current season. Due to non-payment of cane dues, farmers from various states have intensified their protest and putting pressure on the government to get their dues cleared. Millers claim that that excess sugar production and depressed domestic sugar prices in the crushing season 2017-2018, and 2018-2019 have led to an accumulation of cane price arrears.
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