Fair and Remunerative price for sugarcane increased

Context

• The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi here on Wednesday, has approved fair and remunerative price (FRP) of sugar cane for the sugar season of 2025-26 (October-September) at ₹355 a quintal.

• In the previous season, the amount was ₹340.

• “The FRP has been determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State governments and other stakeholders

Fair and Remunerative Price (FRP)

• FRP is the price declared by the government, which mills are legally bound to pay to farmers for the cane procured from them.

• The payment of FRP across the country is governed by the Sugarcane Control order, 1966 issued under the Essential Commodities Act (ECA), 1955 which mandates payment within 14 days of the date of delivery of the cane.

• It has been determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and announced by the Cabinet Committee on Economic Affairs (CCEA).

• CACP is an attached office of the Ministry of Agriculture and Farmers Welfare. It is an advisory body whose recommendations are not binding on the Government.

• CCEA is chaired by the Prime Minister of India.

• The FRP is based on the Rangarajan Committee report on reorganizing the sugarcane industry.

Which Factors are considered for announcing FRP?

• Cost of production of sugarcane

• Return to the growers from alternative crops and the general trend of prices of agricultural commodities

• Availability of sugar to consumers at a fair price

• Price at which sugar produced from sugarcane is sold by sugar producers

• Recovery of sugar from sugarcane

• The realization made from the sale of by-products viz. molasses, bagasse and press mud or their imputed value

• Reasonable margins for the growers of sugarcane on account of risk and profits