The Government has fixed the fair and remunerative price (FRP) of sugarcane payable by factories at Rs 210 a quintal for the 2013-14 season starting October. This is 23.5 per cent more than the Rs 170/quintal in 2012-13.
The Cabinet Committee on Economic Affairs (CCEA) approved the price, which will be linked to a basic recovery rate of 9.5 per cent, subject to a premium of Rs 2.21 a quintal for every 0.1 percentage point increase in recovery above that level.
The ‘fair and remunerative price’ of sugarcane is determined under the Sugarcane (Control) Order 1966. This will be uniformly applicable all over the country.
The revision will be in the interest of sugarcane growers keeping in view the need for a remunerative price and the present situation of the sugar industry, an official statement said. This revision is a continuation of a steady sugarcane pricing regime with moderate increases, which is not likely to disturb inter-se cropping pattern and ensure adequate availability of sugar as well as other basic foodstuff in coming years, it added.