Government approves determination of Fair and Remunerative Price of sugarcane payable by Sugar Mills for sugar season 2021-22

What is the news?

The Cabinet Committee on Economic Affairs has recently approved an increased Fair and Remunerative Price (FRP) of sugarcane for sugar season 2021-22 (October – September).

About the decision

The decision will benefit the 5 crore sugarcane farmers as well as the 5 lakh workers employed in the sugar mills and related ancillary activities.

About the Fair and Remunerative Price(FRP):

• The Fair and Remunerative Price(FRP) is the minimum price that sugar mills have to pay to sugarcane farmers.
• FRP is determined by the Central Government on the basis of the recommendations of the Commission for Agricultural Costs and Prices(CACP).
• The ‘FRP’ of sugarcane is determined under Sugarcane (Control) Order and announced by the Cabinet Committee on Economic Affairs(CCEA).
• The final FRP is arrived at by taking into account various factors such as cost of production, domestic and international prices, overall demand-supply situation, intercrop price parity among others.

About the CCEA:

• Cabinet Committee on Economic Affairs(CCEA) is one of the standing committees of the cabinet constituted by the government of India. The committee is headed by the Prime Minister.
• The major function of the CCEA is to review economic trends on a continuous basis as also the problems and prospects with a view to evolve a consistent and integrated economic policy framework for the country.

About the CACP

• The Commission for Agricultural Costs and Prices(CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965. It is an advisory body whose recommendations are not binding on the Government.