New Delhi, Oct 29 (PTI) The Commission for AgriculturalCosts and Prices (CACP) has recommended Rs 20 per quintal hikein the fair and remunerative price of sugarcane at Rs 275 perquintal for next season, a government official said.
The fair and remunerative price (FRP), the minimum pricesugar mills have to pay to farmers, has been fixed at Rs 255per quintal for the 2017-18 season that starts from thismonth.
"For the next 2018-19 season, the CACP has proposed Rs 275per quintal FRP for sugarcane factoring (in) cost ofproduction, transportation and crop insurance premium andother expenses," the official told PTI.
A report in this regard was recently submitted to the foodministry by the CACP, a statutory body that advises thegovernment on the pricing policy for major farm produce.
The FRP price is linked to a basic recovery rate of 9.5per cent, subject to a premium of Rs 2.68 per quintal forevery 0.1 per cent point increase in recovery rate.
Usually, the government accepts the CACP recommendations.
The proposed increase is also likely to result in states likeUttar Pradesh that do not follow the centrally-announced FRPraising their own advisory prices.
Major sugarcane producing states such as Uttar Pradesh,Punjab and Haryana fix their own sugarcane price called 'stateadvisory prices' (SAPs), which are usually higher than theCentre's FRP.
The sugarcane output this year is estimated to be higherat 337.68 mt as against 306.73 mt in 2016-17 crop year onaccount of good rains, as per the first estimate released bythe agriculture ministry. PTI LUX ARDSBT.
This is unedited, unformatted feed from the Press Trust of India wire.
