The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September) on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
The FRP will paid as under
- FRP of sugarcane for 2020-21 sugar season at Rs.285 per quintal for a basic recovery rate of 10 percent
- A premium of Rs. 2.85 per quintal for every 0.1 percent increase above 10 percent in the recovery
- Reduction in FRP by Rs. 2.85 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10 percent but above 9.5 percent. However, for mills having recovery 9.5 percent or below, the FRP is fixed at Rs 270.75 per quintal.
According to the Government of India, the determination of FRP will be in the interest of sugarcane farmers keeping in view their entitlement to a fair and remunerative price for their produce.
The ‘Fair and Remunerative price’ of sugarcane is determined under Sugarcane (Control) Order, 1966. This will be uniformly applicable all over the country.