Fair and Remunerative Price

The sugarcane farmers in Haryana sat on dharnas outside the sugar mills across the State recently kicking off the agitation to seek hike in the crop’s support price.

What is it?

Fair and remunerative price (FRP) is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers.

Who determines it?

• The FRP is fixed by Union government (Cabinet Committee on Economic Affairs (CCEA) on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP).
• Rules — The ‘FRP’ of sugarcane is determined under Sugarcane (Control) Order, 1966.
• Methodology — Recommended FRP is arrived at by taking into account various factors (cost of production, demand-supply situation, domestic & international prices, inter-crop price parity etc.
• Benefits — FRP assures margins to farmers, irrespective of whether sugar mills generate a profit or not.
• This will be uniformly applicable all over the country. Besides FRP, some states such as Punjab, Haryana, Uttarakhand, UP and TN announce a State Advised Price, which is generally higher than the FRP.