The Centre on Wednesday hiked the minimum price that mills have to pay to sugarcane growers, also known as the Fair and Remunerative Price (FRP), by Rs 5 per quintal to Rs 290 a quintal for 2021-22 (October-September) sugar season while ruling out any immediate commensurate increase in sale price of sugar.
The decision to increase the FRP of sugarcane for was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) held here. The FRP of sugarcane in 2020-21 season was Rs 285 per quintal. Just like in previous years, the Rs 290 a quintal FRP of sugarcane will be applicable on a basic recovery of 10 per cent. Over the basic recovery rate of 10 per cent a premium of Rs 2.90 per quintal will be provided for each 0.1 per cent increase in recovery over and above 10 per cent.
There will be a reduction in FRP by Rs 2.90 per quintal for every 0.1 per cent decrease in recovery.
That apart, there will be no deduction of FRP where recovery is below 9.5 per cent.
“Such farmers will get Rs 275.50 per quintal for sugarcane in ensuing sugar season 2021-22 in place of Rs 270.75 per quintal in current sugar season 2020-21,” Food Minister Piyush Goyal told reporters after a meeting of the cabinet.
FRP as per the Sugarcane (Control) Order, 1966, is the minimum price that sugar mills have to pay to sugarcane farmers.
