Centre Hikes Sugar FRP Price To Rs 290 Per Quintal, No Change In Selling Price

The decision to increase the Fair and Remunerative Price (FRP) of sugarcane for the 2021-22 marketing year (October-September) was taken at meeting of Cabinet Committee on Economic Affairs

The centre on Wednesday hiked the minimum price that mills have to pay to sugarcane growers by Rs 5 per quintal to Rs 290 a quintal for 2021-22 marketing year, but ruled out any immediate increase in the selling price of sugar. The decision to increase the Fair and Remunerative Price (FRP) of sugarcane for the 2021-22 marketing year (October-September) was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA). The government had fixed sugarcane FRP at Rs 285 per quintal for the current 2020-21 marketing year. Briefing the media after the Cabinet meeting, Food and Consumer Affairs Minister Piyush Goyal said the FRP has been increased to Rs 290 per quintal for a basic recovery rate of 10 per cent. He said a premium of Rs 2.90/quintal will be provided for each 0.1 per cent increase in recovery over and above 10 per cent. There will be a reduction in FRP by Rs 2.90/quintal for every 0.1 per cent decrease in recovery.