What is in news : The Union government has increased the minimum price that sugar mills must pay to sugar cane farmers by ₹5 a quintal, setting the fair and remunerative price (FRP) at ₹290 a quintal for the 2021-22 sugar season, which runs from October to September.

FAIR AND REMUNERATIVE PRICE

• Price of sugarcane is fixed by the centre/State
• Fair and remunerative price (FRP) is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers.
• Fixed by Union government on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP).
• Determined under Sugarcane (Control) Order, 1966.
• Methodology: 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.
• 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.