INSUBCONTINENT EXCLUSIVE:
NEW DELHI:The government plans to recommend an 8 per cent increase in the fair and remunerative price (FRP) of sugarcane over the previous
year, which the industry fears will make their operations unviable
If FRP is raised to Rs 275/quintal for the 2018-19 season beginning October, mills may find it difficult to pay farmers their dues
price (MSP) of sugar, currently fixed at Rs 29/kg
The industry wants the price to be Rs 33/kg for south and west India and Rs 35/kg in North India.
The FRP set by the Centre is the minimum
price that sugarcane farmers are legally guaranteed
The hike would impact farmers in Andhra Pradesh, Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh and Gujarat who are paid by mills at FRP
In other key growing states of Uttar Pradesh, Punjab, Haryana, Tamil Nadu and Uttarakhand, farmers get the State Advised Price (SAP) fixed
by state governments which is usually higher than FRP.
Prime Minister Narendra Modi had met 140 sugarcane farmers on June 29 and told them
that the government would announce new cane price in two weeks, which would be higher than the previous season
higher FRP, sugar traders feel that the cost of production would increase by Rs 1,000-1,500 per tonne
The current cost for production of sugar in Uttar Pradesh is Rs 32-33/kg and in Maharashtra, it is Rs 29-30/kg.
This could impact sugarcane
arrears, said the industry
Till June, the arrears paid were at Rs 19,816 crore
Similar would be the case for sugarcane FRP
As per a judgement of the UP High Court the cost of sugarcane production is Rs 280/quintal, so FRP should be Rs 420/quintal for this
