CENTRE INCREASES FRP OF SUGARCANE

The central government, in Feb 2024, announced an 8% rise in the fair and remunerative price (FRP) of sugarcane. The new FRP, set at Rs 340 per quintal, will take effect from October 1, 2024, for the 2024-25 sugar season.

The Central Government determines the FRP based on recommendations from the Commission for Agricultural Costs and Prices (CACP). The announcement is made by the Cabinet Committee on Economic Affairs (CCEA).

1. CACP is a statutory panel and expert body that recommends Minimum Support Prices (MSPs) to the Government.
2. The CACP was established in 1965 and is an attached office of the Ministry of Agriculture and Farmers Welfare.
3. The CCEA, chaired by the Prime Minister of India, is responsible for this decision.
4. The FRP is established according to the guidelines of the Rangarajan Committee Report 2012, focusing on restructuring the sugarcane industry.

About Sugarcane

1. Sugarcane is a tall, perennial grass (don't need to be replanted every year) found in tropical regions, cultivated mainly for its high sugar content used in sugar production.

• Tropical regions are areas of the Earth that are close to the equator and have high temperatures and rainfall. 
• The tropics are defined as the area between the Tropic of Cancer and the Tropic of Capricorn, which are roughly 23.5 degrees north and south latitude. 

2. Climate Requirements: Hot and humid climates with temperatures between 21–27°C.
3. Rainfall: 75–150 cm of annual rainfall
4. Soil: Sugarcane grows well in heavy soils with good drainage, but it can also grow well in medium and light-textured soils with proper irrigation.
5. Planting seasons: In India, sugarcane is planted in subtropical regions from September to October and February to March.
6. Top Sugarcane Producing States: Maharashtra > Uttar Pradesh > Karnataka
7. Besides sugar, it can be processed into various products like ethanol and biofuels.

Fair and Remunerative Price (FRP) FRP is the government-declared price that mills must legally pay to farmers for procured sugarcane. Mills can opt for instalment payments by signing agreements with farmers. Factors Considered for FRP Announcement Cost of sugarcane production Returns from alternative crops and agricultural commodity prices Consumer sugar price and producer sugar sales price Sugar recovery from sugarcane Revenue from by-products like molasses and bagasse Ensuring reasonable margins for sugarcane growers

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