Sugarcane: Rise in fair price
Context: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
- 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.
- The Sugarcane (Control) Order, 1966, has been changed to allow the fixation of sugarcane FRP depending on the following criteria:-
ETHANOL BLENDED PETROL PROGRAMME (EBP PROGRAMME)
- 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.
- 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.