FAIR & RENUMERATIVE PRICES
- April 2, 2021
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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FAIR & RENUMERATIVE PRICES
Subject : Economy
Context : Maharashtra sugar mills demand transport subsidy, FRP payment in parts for survival of industry.
Concept :
- Fair and remunerative price (FRP) is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers.
- The FRP is fixed by Union government on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP).
- The ‘FRP’ of sugarcane is determined under Sugarcane (Control) Order, 1966.
- Recommended FRP is arrived at by taking into account various factors (cost of production, demand-supply situation, domestic & international prices, inter-crop price parity etc.
- FRP assures margins to farmers, irrespective of whether sugar mills generate a profit or not.
- This will be uniformly applicable all over the country. Besides FRP, some states such as Punjab, Haryana, Uttarakhand, UP and TN announce a State Advised Price, which is generally higher than the FRP.
Commission for Agricultural Costs and Prices (CACP)
- The Commission for Agricultural Costs and Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965.
- It is an advisory body whose recommendations are not binding on Government.