The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September) on the recommendations of the Commission for Agricultural Costs and Prices (CACP) asunder:

i)   FRP of sugarcane for 2020-21 sugar season at ₹ 285/- per quintal for a basic recovery rate of 10%;

ii)  a premium of ₹ 2.85 per quintal for every 0.1% increase above 10% in the recovery; and                                                                                          

iii) reduction in FRP by ₹ 2.85 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10% but above 9.5 percent. However, for mills having recovery 9.5 % or below, the FRP is fixed at ₹ 270.75 per quintal.

The 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.

The ‘Fair and Remunerative price’ of sugarcane is determined under Sugarcane (Control) Order, 1966.  This will be uniformly applicable all over the country.

Fair and Remunerative Price linked to sugar recovery rate; mills below threshold receive a lower fixed rate. Fair and Remunerative Price for sugarcane for 2020-21 is fixed with a base rate at a specified recovery benchmark; a premium is payable for each incremental increase in recovery above that benchmark, a reduction applies for recoveries below the benchmark but above a lower threshold, and mills at or below the lower threshold receive a fixed reduced price; the scheme implements growers' entitlement under the Sugarcane (Control) Order, 1966.