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.