The Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, Wednesday has 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 FRP of sugarcane for 2020-21 sugar season has been fixed at Rs.285 per quintal for a basic recovery rate of 10%;
The farmers will get a premium of Rs 2.85 per quintal for every 0.1% increase above 10% in the recovery.
On the other hand, there would reduction in FRP by Rs 2.85 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10% but above 9.5 percent. However, for mills having recovery 9.5 % or below, the FRP is fixed at Rs 270.75 per quintal.
The ‘Fair and Remunerative price’ of sugarcane is determined under Sugarcane (Control) Order, 1966. This will be uniformly applicable all over the country