The revised FRP for sugarcane in India will come into effect from October 1, 2021
CACP has recommended that states should stop fixing SAP for sugarcane
The Indian government’s Cabinet Committee on Economic Affairs (CCEA) had on August 25, 2021 approved the Fair and Remunerative Price (FRP) of sugarcane for sugar season 2021-22 (October-September) at Rs 290 per quintal. The FRP for the 2020-21 season is Rs 285 per quintal.
The approved FRP shall be applicable for purchase of sugarcane from the farmers in the sugar season 2021-22 (starting October 1, 2021) by the sugar mills.
The FRP is for the basic recovery rate of 10% from 100 kg of sugarcane. For every additional 0.1% increase in recovery, there will be a premium of Rs 2.90 per quintal over the FRP and a deduction of Rs 2.9 per quintal for 0.1% decline in recovery.
To protect the interest of farmers, the CCEA also decided that there will be no deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs 275.50 per quintal for sugarcane in the ensuing sugar season 2021-22, up from Rs 270.75 per quintal in the 2020-21 season.
The FRP is determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with the state governments and other stakeholders.
While the Indian government announces the FRP to be paid by the sugar mills to the farmers, several states of the country have their own mechanism to determine the rates for sugarcane to be paid to the growers. It is called state advised price (SAP).
Currently, Uttar Pradesh, Uttarakhand, Haryana and Punjab have their own SAP for sugarcane, which is paid by the sugar mills in these states to the farmers. The SAP is higher than the FRP.
In its ‘Price Policy for Sugarcane: 2021-22 Sugar Season’, the CACP has recommended that the states should stop fixing the SAP. It says that if the states want to continue with the SAP, then they should transfer the difference between the FRP and SAP to the cane farmers through direct benefit transfer (DBT).
Sugarcane FRP and SAP in 5 years (2016-17 to 2020-21)
| Year | All India FRP (Rs/Quintal) | *State Advised Price (Rs/Quintal) | |||
| Uttar Pradesh | Uttarakhand | Haryana | Punjab | ||
| 2016-17 | 230 | 305 | 307 | 315 | 290 |
| 2017-18 | 255 | 315 | 316 | 325 | 300 |
| 2018-19 | 275 | 315 | 317 | 335 | 300 |
| 2019-20 | 275 | 315 | 317 | 340 | 300 |
| 2020-21 | 285 | 315 | 317 | 350 | 310 |
*SAP is for mid-varieties in Uttarakhand, Haryana and Punjab and for common varieties in Uttar Pradesh
- For the 2020-21 crushing season, the SAP for early varieties in Uttar Pradesh is Rs 325 per quintal and Rs 310 per quintal for rejected varieties
- For the 2020-21 crushing season, the SAP for early varieties in Uttarakhand is Rs 327 per quintal
- For the 2020-21 crushing season, the SAP for early varieties in Punjab is Rs 310 per quintal and Rs 295 per quintal for late varieties
- For the 2021-22 crushing season, the Punjab government has announced the SAP of Rs 360 per quintal for mid-varieties
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