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CACP proposes Rs 20 per quintal hike in sugarcane FRP for next season

The fair and remunerative price (FRP), the minimum price sugar mills have to pay to farmers, has been fixed at Rs 255 per quintal for the 2017-18 season that starts from this month

Press Trust of India  |  New Delhi 

Settlement of arrears within 14 days of sale was a prominent pre-poll promise of the Bharatiya Janata Party

The Commission for Agricultural Costs and Prices (CACP) has recommended Rs 20 per quintal hike in the fair and remunerative price of at Rs 275 per quintal for next season, a government official said.

The fair and remunerative price (FRP), the minimum price sugar mills have to pay to farmers, has been fixed at Rs 255 per quintal for the 2017-18 season that starts from this month.

"For the next 2018-19 season, the CACP has proposed Rs 275 per quintal FRP for (in) cost of production, transportation and crop and other expenses," the official told PTI.

A report in this regard was recently submitted to the food ministry by the CACP, a statutory body that advises the government on the pricing policy for major farm produce.

The FRP price is linked to a basic recovery rate of 9.5 per cent, subject to a of Rs 2.68 per quintal for every 0.1 per cent point increase in recovery rate.

Usually, the government accepts the CACP recommendations. The proposed increase is also likely to result in states like that do not follow the centrally-announced FRP raising their own advisory prices.

Major producing states such as Uttar Pradesh, Punjab and fix their own sugarcane price called 'state advisory prices' (SAPs), which are usually higher than the Centre's FRP.

The sugarcane output this year is estimated to be higher at 337.68 mt as against 306.73 mt in 2016-17 crop year on account of good rains, as per the first estimate released by the agriculture ministry.

First Published: Sun, October 29 2017. 12:05 IST
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