The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September) on the recommendations of the Commission for Agricultural Costs and Prices (CACP) asunder:
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.
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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