SUGARCANE FRP

SUGARCANE FRP

TOPIC: Agriculture

Context- The Maharashtra government has issued a government resolution which will allow sugar mills to pay the basic fair and remunerative price (FRP) in two tranches.

Concept-

Fair and Remunerative Price (FRP):

• FRP is the minimum price at which sugarcane is to be purchased by sugar mills from farmers.
• The Central Government announces Fair and Remunerative Prices which are determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and announced by the Cabinet Committee on Economic Affairs (CCEA).
  • CCEA is chaired by the Prime Minister of India.
• The FRP is based on the Rangarajan Committee report on reorganizing the sugarcane industry.
• The payment of FRP across the country is governed by The Sugarcane Control order, 1966 which mandates payment within 14 days of the date of delivery of the cane.

State Government: State Advised Prices (SAP)

• The SAP are announced by the Governments of key sugarcane producing states. SAP is generally higher than FRP.

Sugarcane:

• India is the second largest producer of sugarcane after Brazil.
• Top Sugarcane Producing States: Uttar Pradesh > Maharashtra >Tamil Nadu >Karnataka > Andhra Pradesh> Bihar.
• Ideal Temperature: Between 21-27°C with hot and humid climate.
• Rainfall: Around 75-100 cm.
• It can be grown on all varieties of soils ranging from sandy loam to clay loam given these soils should be well drained.