The center raises the fair and remunerative price of sugarcane

The Fair and Remunerative Price (FRP) of sugarcane is the minimum price established by the central government, which sugar mills are legally required to pay farmers for the sugarcane they purchase.

The FRP is set in accordance with the Sugarcane (Control) Order of 1966. It is determined based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), taking into account factors such as production costs, sugar recovery rates, market sugar prices, and reasonable profit margins for farmers.

The FRP system guarantees that farmers receive timely payments, regardless of the financial performance of the sugar mills. Additionally, individual states may establish a separate State Advised Price (SAP), which is often higher than the FRP, to further support local farmers.

The Fair and Remunerative Price of sugarcane receives final approval from the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, based on the recommendations provided by the CACP.

The CACP analyzes various cost factors related to sugarcane production to recommend the FRP, although it does not possess the authority to approve the final price.