Govt hikes sugarcane FRP by 23.5% to Rs210 per quintal for 2013-14 season

The government today announced a 23.5 per cent increase in the fair and remunerative price (FRP) of sugarcane to Rs210 per quintal from the existing Rs170 per quintal, for the year starting October 2013.

The FRP is the minimum price that is guaranteed to cane farmers.

The cabinet committee on economic affairs (CCEA) has fixed the FRP of sugarcane payable by sugar mills for 2013-14 sugar season (October-September) at Rs210 per quintal, food minister K V Thomas said after the CCEA meeting.

This price will be linked to a basic recovery rate of 9.5 per cent, subject to a premium of Rs2.21 per quintal for every 0.1 percentage point increase in recovery above that level.

The 'fair and remunerative price' of sugarcane is determined under the Sugarcane (Control) Order 1966. This will be uniformly applicable all over the country.

The moderate increase in sugarcane prices will not affect cropping pattern while at the same time ensuring supplies to sugar mills, an official release said.

The Commission for Agricultural Costs and Prices (CACP) had suggested a Rs40 increase in the FRP for sugarcane to Rs210 per quintal for 2013-14.

The FRP is the sugarcane price fixed by the central government but states like Uttar Pradesh and Tamil Nadu announce their own rate called state advisory price (SAP), which are higher than the FRP.