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CCEA to consider hike in sugarcane FRP to Rs 220 per quintal

06 Feb 2014 Evaluate

The Cabinet Committee on Economic Affairs is likely to consider today a proposal to increase the fair and remunerative price (FRP) for sugarcane by Rs 10 to Rs 220 per quintal for 2014-15. The FRP for sugarcane for the ongoing 2013-14 (October-September) sugar year stands at Rs 210 per quintal.

The proposal moved by the Food Ministry is in line with recommendations of statutory body, the Commission for Agricultural Costs and Prices, which advises the government on pricing policy for major farm produce.

The FRP is the minimum price that sugarcane farmers are legally guaranteed. The FRP is fixed after taking into consideration the margins for sugarcane farmers, based on the cost of production of sugarcane, including the cost of transportation. The state governments are however free to fix their own statutory advised price (SAP) and millers can offer any price above the FRP.