Govt hikes sugarcane FRP by 4.2 % at Rs 145/qtl
The government has hiked the fair and remunerative price (FRP)of sugarcane by 4.2 per cent at Rs 145 per quintal for the 2011-12 season.
By PTI |
New Delhi: The government has hiked the fair and remunerative price ( FRP) of sugarcane by 4.2 per cent at Rs 145 per quintal for the 2011-12 season, starting October.
The FRP of sugarcane for 2010-11 season was Rs 139.12 per quintal. Sugar season runs from October to September.
"FRP of sugarcane for 2011-12 season has been fixed at Rs 145 per quintal," according to the letter written by the Food Ministry to the sugarcane producing states like Maharasthra.
The decision was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) last week.
FRP is the minimum price that sugarcane farmers are legally guaranteed. However, the sugar mills are free to offer any price above the FRP.
From the 2009-10 season, the Centre has decided to fix FRP as the price to be paid by the sugar mills instead of the Statutory Minimum Price (SMP) earlier.
FRP is linked to a basic recovery rate of 9.5 per cent, subject to a premium of Rs 1.46 for every 0.1 percentage point increase in recovery above 9.5 per cent. Recovery rate is the sugar produced from the crushed cane.
The FRP is fixed after taking into consideration the margins for sugarcane farmers on account of risk as well as profit on the cost of production of sugarcane, including the cost of transportation.
It includes a margin of nearly 45 per cent on account of profit and risk to the farmers on the all India adjusted average cost of production of sugarcane, including the cost of transportation to the mill gate.
The FRP of sugarcane for 2010-11 season was Rs 139.12 per quintal. Sugar season runs from October to September.
"FRP of sugarcane for 2011-12 season has been fixed at Rs 145 per quintal," according to the letter written by the Food Ministry to the sugarcane producing states like Maharasthra.
The decision was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) last week.
FRP is the minimum price that sugarcane farmers are legally guaranteed. However, the sugar mills are free to offer any price above the FRP.
From the 2009-10 season, the Centre has decided to fix FRP as the price to be paid by the sugar mills instead of the Statutory Minimum Price (SMP) earlier.
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FRP is linked to a basic recovery rate of 9.5 per cent, subject to a premium of Rs 1.46 for every 0.1 percentage point increase in recovery above 9.5 per cent. Recovery rate is the sugar produced from the crushed cane.
The FRP is fixed after taking into consideration the margins for sugarcane farmers on account of risk as well as profit on the cost of production of sugarcane, including the cost of transportation.
It includes a margin of nearly 45 per cent on account of profit and risk to the farmers on the all India adjusted average cost of production of sugarcane, including the cost of transportation to the mill gate.
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