28 Feb 2022 Fair and Remunerative Price (FRP)
Fair and Remunerative Price – Today Current Affairs
- Recently, a government proposal has been issued by the Government of Maharashtra, according to which the sugar mills will be able to pay the basic ‘Fair and Remunerative Price’ (FRP) in two phases.
- Sugar mill owners have welcomed this move of the government. However, the farmers are not happy with this.
Today Curent Affairs
What is FRP?
- ‘Fair and Remunerative Price’ (FRP) is the ‘price’ declared by the government. Sugar mills are legally bound to pay for ‘cane’ purchased from farmers at this ‘price’.
- Payment of FRP across the country is governed by the ‘Sugarcane Control Order, 1966’. As per this order, it is mandatory to make payment within 14 days from the date of delivery of sugarcane.
Determination of FRP: The Hindu Analysis
- The ‘Fair and Remunerative Price’ (FRP) is based on the recovery of sugar from cane. The ‘fair and remunerative price’ for the 2021-22 sugar season has been fixed at Rs 2,900 per tonne on the basis of a base recovery of 10 per cent.
- Sugar recovery is the ratio between ‘crushed sugarcane’ and ‘sugar produced’, expressed as a percentage.
- Higher the recovery, higher will be the FRP and higher will be the production of sugar.
Declaration of FRP: The Hindu Analysis
- The ‘Fair and Remunerative Price’ is announced by the Central Government. It is determined by the ‘Cabinet Committee on Economic Affairs’ (CCEA) based on the recommendations of the ‘Commission on Agricultural Costs and Prices (CACP’).
- The CCEA is chaired by the Prime Minister of India.
- ‘Fair and Remunerative Price’ (FRP) is based on the report of Rangarajan Committee on ‘Restructuring of Sugarcane Industry’.
Importance of FRP: The Hindu Analysis
- Assured payment is one of the major reasons for popularizing sugarcane crop among sugarcane farmers.
- Delay in payment to sugarcane farmers can attract interest of up to 15 per cent per annum, and sugar commissioners can recover non-payment FRP as arrears in revenue collection by attaching properties of mills.
Reasons for the farmers’ protest in Maharashtra: The Hindu Analysis
- Farmers argue that this method proposed by the government will affect their income. They say that while the FRP will be paid in installments and will depend on unknown variables, they will have to pay bank loans and other expenses as usual.
- Also, farmers mostly require lump sum amount at the beginning of the season (October-November), as their next crop cycle depends on it.
Today Current Affairs
Sugarcane: The Hindu Analysis
- Temperature: Between 21-27 °C with hot and humid climate.
- Rainfall: 75-100 cm.
- Soil Type: Deep rich loamy soil.
- Top sugarcane producing states: Uttar Pradesh > Maharashtra > Karnataka > Tamil Nadu > Bihar.
- After Brazil, India is the second largest producer of sugarcane.
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