Cost-benefit of deferred cane outgo and end to area reservation

While Gujarat is the only state to have gone ahead with staggered payments, the issue of area reservation has been resisted by most states, Maharashtra being an exception

A few weeks back, the Central government declared the Fair and Remunerative Price (FRP) for sugarcane for the 2021-22 season starting in October at 290 per quintal based on an average recovery of 10 per cent.

The FRP was raised by a nominal Rs 5 per quintal from the level in sugar season 2020-21.

The Commission for Agriculture Costs and Prices (CACP), which recommended this price among its other recommendations for the year, has made two notable suggestions.

The first is amending the Sugarcane Control Order (SCO), 1966 to allow payment of sugarcane price to farmers in installments.

The Commission’s