CCEA approves FRP payable by sugar mills for season 2020-21
File photo of a sugar mill

CCEA approves FRP payable by sugar mills for season 2020-21

New Delhi, August 19, 2020

The Cabinet Committee on Economic Affairs (CCEA) today approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September).

The CCEA decision is based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). Accordingly, the FRP of sugarcane for the 2020-21 sugar season is fixed at Rs 285 per quintal for a basic recovery rate of 10%, an official press release said.

A premium of Rs 2.85 per quintal is fixed for every 0.1% increase above 10% in the recovery. There will be a 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%. However, for mills having a recovery 9.5 % 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 release said.

The ‘Fair and Remunerative price’ of sugarcane is determined under the Sugarcane (Control) Order, 1966. This will be uniformly applicable all over the country.


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