Govt fixes sugarcane prices for 20-21 sugar season at Rs285/tonne
20 August 2020
The government has fixed the Fair and Remunerative Price (FRP) of sugarcane for the 2020-21 sugar season at Rs285 per quintal for a basic recovery rate of 10 per cent, an increase of Rs10 per tonne.
There will be a premium of Rs2.85 per quintal to be paid for every 0.1 per cent increase above 10 per cent in the recovery and an equal reduction for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10 per cent but above 9.5 per cent.
However, for mills having recovery 9.5 per cent or below, the FRP is fixed at Rs270.75 per quintal.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi on Wednesday 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).
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.
The sugarcane sale season will start in October 2020. The FRP, which is provided for by the Sugarcane (Control) Order, 1966, is the minimum price that sugar mills have to pay to sugarcane farmers.
Major sugarcane producing states such as Uttar Pradesh, Maharashtra, Punjab and Haryana fix their own sugarcane price called ‘state advisory prices’ (SAPs), which are usually higher than the Centre’s FRP.
According to government estimates, the country’s total sugar production is pegged at 28-29 million tonnes in the current year ending next month, compared to 33.1 million tonnes during 2018-19 due to a sharp fall in cane acreage in Maharashtra and Karnataka.