Fair and Remunerative Price Current Affairs - 2020
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Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the proposal for Determination of Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2019-20 sugar season.
CCEA kept FRP at Rs 275 per quintal the same as last year (2018-19) for sugarcane sold to mills during forthcoming sugar season of 2019-20, much to distress of sugarcane growers.
FRP is based on recommendation of Commission of Agricultural Costs & Prices (CACP) as per its August 2018 report on- Price Policy for Sugarcane for 2019-20 season.
CCEA also approved to provide a premium of Rs.2.75 per quintal for every 0.1% increase above 10% in recovery.
Price of sugarcane is fixed by Centre/State, while price of sugar is market determined.
What is Fair and Remunerative Price?
It is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers. FRP is fixed by Union government on basis of recommendations of Commission for Agricultural Costs and Prices (CACP), an attached office of Union Ministry of Agriculture & Farmers Welfare.
Factors: Recommended FRP is achieved by taking into account various factors such as cost of production, demand-supply situation, inter-crop price parity, domestic & international prices etc.
Sugarcane’s FRP is determined under Sugarcane (Control) Order, 1966 which will be uniformly applicable all over country. Besides FRP, some states like Punjab, Haryana, Uttarakhand, Uttar Pradesh and Tamil Nadu announce a State Advised Price, which is generally higher than the FRP.
Significance: FRP approval will ensure a guaranteed price to cane growers. It also assures margins to farmers, irrespective of whether sugar mills generate a profit or not as FRP determination is in interest of sugarcane growers keeping in view their entitlement to FRP for their produce.
Tags: Agriculture • Cabinet Committee on Economic Affairs • Commission for Agricultural Costs and Prices • Fair and Remunerative Price • Sugarcane
Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2018-19 keeping in view the interest of sugarcane farmers. It was approved based on the recommendation of Commission for Agricultural Costs and Prices (CACP). CCEA has hiked Rs. 20 per quintal in the FRP of sugarcane at Rs. 275 per quintal for basic recovery rate of 10%. It is higher by 77.42% over production cost and ensures that farmers gets return of more than 50 % over their production cost.
Fair and Remunerative Price (FRP)
The FRP is the minimum price that sugar mills have to pay to sugarcane farmers. It is determined on basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stake-holders. The final FRP is arrived by taking into account various factors such as cost of production, domestic and international prices, overall demand-supply situation,inter-crop price parity, terms of trade prices of primary by-products and its impact on general price level and resource use efficiency.
The sugar sector is an important agro-based sector in Indian agricultural economy that impacts livelihood of about 5 crore sugarcane farmers and their dependents. It also employs around 5 lakh workers directly in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.
Tags: Agriculture • CCEA • Fair and Remunerative Price • FRP • National