The Union Cabinet on Wednesday approved fixing the fair and remunerative price (FRP) of sugarcane at Rs 255 per quintal for sugar season 2017-18.
The FRP so approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2017-18, by the sugar mills
“Sugar mills situation has improved. For 2017-18, sugarcane FRP of Rs 255 per quintal has been approved, which is 10.6% higher than the current level,” Finance Minister Arun Jaitley said.
The cane price is linked to a basic recovery rate of 9.5%, subject to a premium of Rs 2.68 per quintal for every 0.1 % point increase in recovery above that level , an official statement said.
The FRP is the minimum price that sugarcane farmers are legally guaranteed. However, state governments are free to fix their own state advised price, and millers can offer any price above the FRP.
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