The fair and remunerative price (FRP) for sugarcane is likely to be raised 23.5 per cent to Rs 210 a quintal by the Cabinet Committee on Economic Affairs (CCEA) for the 2013-14 sugar season. The proposed FRP hike would be in line with the recommendation of the Commission for Agriculture Costs and Prices. However, if approved, could help farmers offset the rising cultivation costs, including both labour and fuel.
Also, CCEA is expected to consider allowing export of edible oil from the domestic tariff area (DTA) to special economic zones. Besides, it is also likely to consider allowing export of coconut oil and permit the export of edible oils with a minimum export price (MEP) of $1,500 a tonne in branded consumer packs of up to 5 kg without any quantitative restrictions.
Planting of sugarcane starts a year-ahead and an early announcement of FRP would help farmers make informed decisions. FRP, the benchmark cane price for 2013-14 sugar year, starting October, is linked to a basic recovery rate of 9.5 per cent, subject to a premium of Rs 2.21 a quintal for every 0.1 per cent increase in recovery above 9.5 per cent. FRP is fixed by the Centre but there at least five states – Uttar Pradesh, Haryana, Punjab, Uttarakhand and Tamil Nadu - that announce their own rates, called the State Advisory Price (SAP).
India is expected to produce about 24 million tonnes (mt) of sugar in the current year, down from 26 mt last year. Domestic consumption of sugar is pegged at 22 mt.
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: