A government panel has recommended a 10 per cent hike per quintal in the fair and remunerative price (FRP) for sugarcane for the 2015-16 season over the existing rate of Rs 220.
The Commission for Agricultural Costs and Prices (CACP) recommendation to hike the FRP to Rs 243 per quintal will be considered by the Union Cabinet, which would take a final decision. The Centre is also expected to consult state governments in this regard.
Government sources said farmers’ organisations were demanding an increase of Rs 50 per quintal and the CACP proposal is expected to disappoint them. The cash-strapped sugar industry may not be too enthused with the proposal as it is struggling to pay the arrears to cane growers.
The FRP is the minimum price that cane growers are guaranteed legally by the governments. The state governments, which decide the minimum rates that farmers should get, usually fix the state advised price (SAP) slightly higher than the FRP.
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