Cabinet Okays Increase in Sugarcane FRP by Rs 10 to Rs 285 Per Quintal for 2020-21

However, a premium of Rs 2.85 per quintal will be paid by sugar mills for every 0.1 per cent increase above 10 per cent in the recovery, it said. Also, the government has made a provision for 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 per cent but above 9.5 per cent.

However, for mills having recovery of 9.5 per cent or below, the FRP is fixed at Rs 270.75 per quintal. “The determination of FRP will be in the interest of sugarcane growers keeping in view their entitlement to a fair and remunerative price for their produce,” the statement said.

The FRP has been fixed in line with the recommendation of the Commission of Agricultural Costs and Prices (CACP), a statutory body that advises the government on the pricing policy for major farm produce. The FRP, which is determined under Sugarcane (Control) Order, 1966, is the minimum price that sugar mills have to pay to sugarcane farmers.