Centre increases sugarcane FRP to Rs 290/quintal, terms it ‘highest ever’

Vibha Sharma

Tribune News Service

New Delhi, August 25

The Centre today increased the Fair and Remunerative Price (FRP), the minimum price sugar mills will pay to farmers, for sugarcane by Rs 5 to Rs 290 per quintal, calling it the “highest ever”.

Union Minister Piyush Goyal said, “The FRP for 2021-22 has been fixed at Rs 290 per quintal for a basic recovery rate of 10 per cent. The move will benefit 5 crore cane growers and 5 lakh workers employed in sugar mills and ancillary activities.”

Goyal said the cost of production of cane was Rs 155 per quintal. The FRP of Rs 290 per quintal at a recovery rate of 10 per cent was higher by 87.1 per cent, giving the farmers a return of much more than 50 per cent over their cost, he said.

Many states, including Punjab, announce their own State Advised Price (SAP) over and above the FRP. While SAP is a fixed amount, the FRP is based on the recovery rate of sugar from cane. Since SAP is generally higher, sugar mills prefer FRP for payment.

Punjab has hiked SAP to Rs 360/quintal

Polls on mind, the Punjab Government on Tuesday announced Rs50 per quintal hike in SAP over last year’s price, fixing it at Rs360 per quintal.

Purchase target: 3,088 Lakh Tonnes

About 3,088 lakh tonnes of cane is expected to be purchased by mills. Total remittance to growers will be about Rs1 lakh crore.