The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the proposal in respect of Determination of ‘Fair and Remunerative Price’ of sugarcane payable by sugar mills for 2019-20 sugar season.

The FRP is based on the recommendation of the Commission of Agricultural Costs & Prices (CACP) as per its report of August 2018 on the price policy for sugarcane for the 2019-20 season. The CACP has recommended the same price for the 2019-20 sugar season as it was for the sugar season 2018-19.

The CCEA also approved to provide a premium of ₹ 2.75 per qtl for every 0.1% increase above 10% in the recovery; 

Benefits: 

The approval will ensure a guaranteed price to cane growers. The ‘FRP’ of sugarcane is determined under Sugarcane (Control) Order, 1966. This will be uniformly applicable all over the country. Determination of FRP will be in the interest of sugarcane growers keeping in view their entitlement to a fair and remunerative price for their produce.

Fair and Remunerative Price determination ensures uniform cane pricing with recovery-linked premium increasing growers' compensation. Determination of the Fair and Remunerative Price for the 2019-20 season was approved based on the price recommendation for the previous season and is fixed under the Sugarcane (Control) Order, 1966, to apply uniformly nationwide. A recovery-linked premium mechanism provides additional premium per quintal for increases in sucrose recovery above the specified threshold, connecting mill recovery performance to supplementary remuneration for growers.