The central government last increased the minimum price paid by sugar mills to sugarcane growers in August 2020.
The Union Cabinet is likely to increase the Fair and Remunerative Price (FRP) by Rs 5 to Rs 290 per quintal for the next marketing years.
- Last Update:August 25, 2021 11:54 am
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Sources told News18.com that the central government may increase the Fair and Remunerative Price (FRP) by Rs 5 to Rs 290 per quintal for the next marketing years. The marketing year starts from October every year. Thousands of farmers are likely to benefit from this move amid the COVID-19 pandemic. According to sources, this decision was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA). The Union Cabinet is expected to announce the decision at its meeting on Wednesday.
Introduced under the Sugarcane (Control) Order, 1966, FRP is the minimum price that sugar mills have to pay to cane farmers. The FRP takes into account the actual cost of production, demand and supply, possible impact on sugar prices and also international prices.
The central government had last increased the minimum price of sugar mills to sugarcane growers in August 2020. The fair and remunerative price for the marketing year 2020-21 was increased from ₹10 to ₹285 per quintal.
It is to be noted that the major sugarcane producing states like Uttar Pradesh, Punjab and Haryana have their own sugarcane price called ‘State Advisory Price’ (SAP). This is usually higher than the FRP of the centre.
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