FAIR AND REMUNERATIVE PRICE’ OF SUGARCANE

Prelims level : Economics- Agriculture Mains level : GS-III- Transport and marketing of agricultural produce and issues and related constraints
GS-III- Issues related to direct and indirect farm subsidies and minimum support prices
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Why in News?

  • The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal in respect of Determination of ‘Fair and Remunerative Price’ of sugarcane payable by sugar mills to the cane growers.
  • Price of sugarcane is fixed by the centre/State, while the price of sugar is market determined.

FRP:

  • 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 based on the recommendation of the Commission of Agricultural Costs & Prices (CACP).
  • The approval will ensure a guaranteed price to cane growers. The ‘FRP’ of sugarcane is determined under Sugarcane (Control) Order.
  • 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 (FRP) is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers.

Sugar buffer stock:

  • The Cabinet has also approved the creation of buffer stock of 40 lakh Metric Tonnes of sugar for one year from the 1st of next month.
  • The decision will lead to an improvement in the liquidity in sugar inventories and stabilization in sugar prices.
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