Cabinet nod for hike in sugarcane FRP

New Delhi, May 24 (IANS) The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved fixing Rs 255 per quintal, as the fair and remunerative price (FRP) of sugarcane for the 2017-18 season, a hike of nearly 11 per cent.

"The CCEA has given the approval for fixing FRP of sugarcane at Rs 255 per quintal for sugar season 2017-18 linked to a basic recovery rate of 9.5 per cent subject to a premium of Rs 2.68 per quintal for every 0.1 per cent point increase in recovery above that level," said an official statement.

The approved FRP reflects an increase of 10.87 per cent over the FRP of sugar season 2016-17.

The recommended FRP has been arrived at by taking into account factors like cost of production, overall demand-supply situation, domestic and international prices, inter-crop price parity, terms of trade prices of primary by-products, and likely impact of FRP on general price level and resource use efficiency, it said.

FRP or the minimum price that sugarcane farmers are legally guaranteed, has been determined on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultation with state governments and other stake-holders.

Cane price arrears for the current sugar season 2016-17 is the lowest as compared to last five years of the corresponding period.

In order to address the current sugar season's shortfall in production and any possible adverse price sentiment, the Government has allowed import of only 5 lakh MT of raw sugar at zero duty.

However, to protect the Indian farmers, import quantity has been restricted along with zonal restrictions so as to make it available only in actually deficient areas and safeguard the interest of cane farmers.

The sugar industry impacts livelihood of about 50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities.