Rapid Fire
Increase in Fair and Remunerative Price
- 06 May 2025
- 1 min read
The Cabinet Committee on Economic Affairs (CCEA) increased the Fair and Remunerative Price (FRP) of sugarcane for the 2025-26 sugar season.
- About FRP: FRP is the minimum price at which sugar mills are legally required to purchase sugarcane from farmers in India.
- It is governed by the Sugarcane Control Order, 1966 issued under the Essential Commodities Act (ECA), 1955.
- Under the Sugarcane Control Order, 1966, payment must be made within 14 days of cane delivery; delays attract up to 15% interest, and unpaid FRP can be recovered by attaching mill properties.
- The FRP is based on the Rangarajan Committee report (2012) on reorganizing the sugarcane industry.
- Its determination is based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and after consultations with State Governments and other stakeholders.
- CACP, under the Ministry of Agriculture and Farmers Welfare, is an advisory body with non-binding recommendations.
- Factors Considered in FRP:
| Read More: Fair and Remunerative Price (FRP) |
