Cabinet approves FRP of sugarcane for the sugar season 2020-21

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19 August 2020, New Delhi: The Cabinet Committee on Economic Affairs has approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September). It is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) as under:

i) FRP of sugarcane for 2020-21 sugar season at Rs.285/- per quintal for a basic recovery rate of 10%; 

ii) A premium of Rs. 2.85 per quintal for every 0.1% increase above 10% in the recovery; and                                                                                           

iii) Reduction in FRP by Rs. 2.85 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10% but above 9.5 percent. However, for mills having recovery 9.5 % or below, the FRP is fixed at Rs 270.75 per quintal.

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The determination of FRP will be in the interest of sugarcane growers keeping in view their entitlement to a fair and remunerative price for their produce.

The ‘Fair and Remunerative price’ of sugarcane is determined under Sugarcane (Control) Order, 1966.  This will be uniformly applicable all over the country.

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