The Cabinet Committee on Economic Affairs (CCEA) has hiked the Fair and Remunerative Price (FRP) of sugarcane by Rs 25 per quintal to Rs 255 for 2017-18 season beginning October. This step has been taken in line with the recommendations of the Commission for Agricultural Costs and Prices (CACP), a statutory body that advises the government on the pricing policy for major farm produce. The FRP of sugarcane was kept unchanged at Rs 230 per quintal this year.
The production of sugarcane in the current year declined by over 12% to 306.03 million tonnes due to drought in key growing states Maharashtra and Karnataka. However, the prospects in 2017-18 seem to be bright as the Met Department has forecast normal monsoon.
The FRP is the minimum price that sugarcane farmers are legally guaranteed. However, state governments are free to fix their own state advised price (SAP) and millers can offer any price above the FRP.