Government may approve increase in sugarcane FRP

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New Delhi. The Cabinet Committee on Economic Affairs (CCEA) on Wednesday may approve an increase in the FRP of fair and profitable price of sugarcane by Rs 25 per quintal. Sugarcane FRP can be reduced to Rs 255 per quintal in this procurement season starting from October 2017-18. In the current 2016-17 procurement season, the FRP of sugarcane is Rs 230 per quintal.

The modified sugarcane plants also produce more sugar, which could be used for ethanol production, researchers said.

FRP is the minimum price at which the law of sugarcane farmers is a guaranteed right. However, the State Governments have the right to decide their own state consultation price SAP in their state or sugar mills can offer farmers any price in excess of FRP.

According to sources, the Food Ministry had recommended a cane FRP of Rs 255 per quintal for the procurement season of 2017-18 and adding it to the sugar procurement rate of 9.5 percent. Receipt rate is the ratio of sugar obtained by crushing sugarcane.

The Ministry has recommended the same rate which was recommended by the Agricultural Costs and Prices Commission CACP. It is a statutory body that advises the government on determining the price of major agricultural products. This increase has been recommended keeping in mind the capacity of the mill owners and the increasing cost of production.

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