Why in the News?
The Cabinet Committee on Economic Affairs has approved an increase in the Fair and Remunerative Price (FRP) of sugarcane for the 2025-26 sugar season, raising it from ₹340 per quintal to ₹355 per quintal.
About Fair and Remunerative Price (FRP):
- The FRP for sugarcane is set under the Sugarcane Control Order, 1966.
- It replaced the Statutory Minimum Price (SMP) in 2009-10 to better align with economic conditions and improve farmers’ welfare.
- It represents the minimum price sugar mills must pay to farmers for sugarcane.
- It is determined by the central government based on Commission for Agricultural Costs and Prices (CACP) recommendations, with discussions involving state authorities and sugar industry associations.
- Factors Influencing FRP:
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- Cost of production: ₹173 per quintal for 2025-26.
- Return from alternative crops: Comparison of potential earnings from other crops.
- Consumer sugar prices: Affects sugar production costs.
- Sale price of sugar: Influences the FRP.
- Sugarcane-to-sugar recovery rate: Efficiency of conversion.
- Income from by-products: Including molasses and bagasse.
- Profit margins for farmers: Ensures financial viability.
- State Agreed Price (SAP): States can set SAP, often higher than the FRP, based on local conditions.
- Minimum Selling Price (MSP) for sugar was introduced in 2018 to protect farmers, including FRP and conversion costs.
Sugarcane Cultivation in India:
- Sugarcane is India’s highest production-value crop, key for producing sugar, jaggery, and khan sari.
- Major states: Uttar Pradesh (contributes 50% of total production), Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh.
- Sugarcane thrives in a tropical climate (21°C – 27°C), with 75%-150% rainfall. It needs well-drained soil and a cool, dry winter for ripening.
- India has the largest global sugarcane cultivation area after Brazil.
- The ratooning method reduces costs by allowing a second crop from the same roots.
| [UPSC 2015] The Fair and Remunerative Price (FRP) of sugarcane is approved by the:
Options: (a) Cabinet Committee on Economic Affairs* (b) Commission for Agricultural Costs and Prices (c) Directorate of Marketing and Inspection, Ministry of Agriculture (d) Agricultural Produce Market Committee |
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