Government hikes sugarcane FRP by Rs 25 per quintal for 2017-18
NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Wednesday has agreed to fix the fair and remunerative price (FRP) for sugarcane atRs 255 per quintal for the new sugar season (October-September). This marks a Rs 25 per quintal increase compared to the previous year.
This 11% rise in FRP has taken place after two years. Last year, the government had kept prices unchanged at Rs 230 per quintal. In 2009-10, FRP was about Rs 130 per quintal. The latest revision is the seventh increase since 2010-11, marking a 96% increase.
Meanwhile, industry association body, the Indian Sugar Mills Association (ISMA), said sugar prices in wholesale and retail are likely to correct with the latest development as demand for sugar by the industry was less.
FRP is fixed by the central government keeping in view the recommendations of the Commission for Agricultural Costs and Prices (CACP). It is the minimum assured price that farmers get. Some state governments declare State Advisory Price (SAP) which is above the FRP to protect farmers’ interest .
“Keeping in view the interest of sugarcane farmers and given the importance of the sugar industry, the Union cabinet gave its approval for fixing FRP of sugarcane at Rs 255 per quintal for the sugar season 2017-18, linked to a basic recovery rate of 9.5% subject to a premium of Rs 2.68 per quintal for 0.1% point increase in recovery above that level,” an official statement said.
Source: ECONOMIC TIMES