The central government is likely to increase fair and remunerative price (FRP) by Rs 5 to Rs 290 per quintal for the next marketing years, sources told News18.com. The marketing year starts from October every year. This move is likely to benefit thousand of farmers amid Covid-19 pandemic. The decision was taken in a meeting of Cabinet Committee on Economic Affairs (CCEA), according to sources. Union Cabinet is expected to announce the decision in the meeting scheduled later on Wednesday.
Introduced under, Sugarcane (Control) Order, 1966, the FRP is the minimum price that sugar mills have to pay to sugarcane farmers. The FRP takes into account account the actual cost of production, demand and supply, likely impact on sugar prices and also the international prices.
The central government had last increased the minimum price sugar mills pay to sugarcane growers in August 2020. The fair and remunerative price was hiked by ₹10 to ₹285 per quintal for 2020-21 marketing year.
It must be noted that major sugarcane producing states such as Uttar Pradesh, Punjab and Haryana have their own sugarcane price called ‘state advisory prices’ (SAPs). This is usually higher than the Centre’s FRP.
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