CCEA may consider tomorrow hike in sugarcane FRP

NEW DELHI: The Cabinet Committee on Economic Affairs is likely to consider tomorrow a proposal to increase the fair and remunerative price for sugarcane by Rs 10 to Rs 220 per qunital 2014-15.

The the fair and remunerative price (FRP) for sugarcane for the ongoing 2013-14 (October-September) sugar year stands at Rs 210 per quintal.

"The CCEA meeting is scheduled for tomorrow. Sugarcane FRP is on the agenda," sources said.

The proposal moved by the Food Ministry is in line with recommendations of statutory body, the Commission for Agricultural Costs and Prices which advises the government on pricing policy for major farm produce.

The FRP is the minimum price that sugarcane farmers are legally guaranteed. However, state governments are free to fix their own statutory advised price (SAP) and millers can offer any price above the FRP.

The FRP is fixed after taking into consideration the margins for sugarcane farmers, based on the cost of production of sugarcane, including the cost of transportation.

Government has pegged sugar output at 24.1 million tonnes for this year, lower than 25 million tonnes achieved in the 2012-13.