Sugarcane: Rise in fair price

Sugarcane: Rise in fair price

Sugarcane: Rise in fair price


The minimum price that sugar mills must pay to cane growers has been increased by $5 per quintal for the 2021-22 sugar season, bringing the fair and remunerative price (FRP) to 290 per quintal.

Sugarcane: The Pricing policy

  1. The Central Government sets the cane price based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), in cooperation with state governments and after receiving feedback from sugar industry organizations. 
  2. The Sugarcane (Control) Order, 1966, has been changed to allow the fixation of sugarcane FRP depending on the following criteria:-

a) sugarcane production costs;
b) the return to growers from other crops, as well as the general price trend
of agricultural products
c) sugar is available to consumers at a reasonable price;
d) the price at which sugar producers sell sugar made from sugarcane;
e) Recovery of sugar from sugarcane
f) the profit from the sale of by-products such as molasses, bagasse, etc
press mud or their fictitious worth
g) Reasonable margins for sugarcane growers in terms of risk and profit


  1. Ethanol is an agro-based substance made primarily from molasses, a sugar industry by-product. The sugar industry is unable to pay farmers their cane prices on time when there is a surplus of sugarcane and prices are low.
  2. The Ethanol Blending Program (EBP) intends to produce ethanol-motor spirit blends in the sugar industry in order to decrease pollution, conserve foreign exchange, and boost value addition, helping farmers to erase cane price arrears.

Source: The Hindu
Syllabus: Prelims; GS 3 (Agriculture)

Download Yojna IAS Daily Current Affairs of 30th August 2021

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