Fair and Remunerative Price
- Context: The Cabinet Committee on Economic Affairs increased the Fair and Remunerative Price (FRP) of sugarcane by ₹10 to ₹365 per quintal for the 2026–27 sugar season.
About Fair and Remunerative Price
- The Fair and Remunerative Price is the minimum statutory price that sugar mills must pay to sugarcane farmers, ensuring fair and assured remuneration.
- It was introduced in 2009 replacing the earlier Statutory Minimum Price (SMP) and is governed under the Essential Commodities Act, 1955.
- The FRP is recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs (CCEA).
- It aims to ensure income security for farmers, protect them from market fluctuations, and maintain stability in sugar production and supply.
- The FRP is determined based on cost of production (A2+FL), sugar recovery rate, demand-supply conditions, and a reasonable profit margin for farmers.
- It is announced annually before the sugar season (October–September) to guide procurement and pricing decisions.
