Sugarcane fair price increased to Rs230 per quintal for 2015-16 season
Moneylife Digital Team 16 January 2015

The FRP of sugarcane payable to farmers by sugar mills is increased by Rs10 to Rs230 per quintal for the 2015-16 sugar season. The FRP will be linked to a basic recovery rate of 9.5%, subject to a premium of Rs2.42 per quintal for every 0.1 percentage point increase in recovery above that level

 

The Cabinet Committee on Economic Affairs (CCEA) Friday approved a Rs10 per quintal increase in the fair and remunerative price (FRP) for sugarcane to Rs230 for the 2015-16 season (October-September).
 
The FRP is the minimum price that sugarcane farmers are legally guaranteed. However, state governments are free to fix their own state advised price (SAP) and millers can offer any price above the FRP.
 
The government has fixed sugarcane price at Rs220 per quintal for the current 2014-15 season.
 
"The CCEA has approved the FRP of sugarcane payable by sugar mills for the 2015-16 sugar season to be fixed at Rs230 per quintal. This decision will ensure a guaranteed price to cane growers," an official statement said.
 
The FRP will be linked to a basic recovery rate of 9.5%, subject to a premium of Rs2.42 per quintal for every 0.1 percentage point increase in recovery above that level, it added.
 
The CCEA has approved in toto the recommendation of the Commission for Agricultural Costs and Prices (CACP), a statutory body that advises the government on the pricing policy for major farm produce.
 
The FRP is fixed after taking into consideration the margins for sugarcane farmers, based on the cost of production of sugarcane, including the cost of transportation.
 
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