The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, approved the ‘Fair and Remunerative Price’ of sugarcane payable by sugar mills for the 2015-16 sugar season to be fixed at Rs 230 quintal.
The government has fixed sugarcane price at Rs 220 per quintal for the current 2014—15 season.
The price is linked to a basic recovery rate of 9.5 per cent, subject to a premium of Rs.2.42 per quintal for every 0.1 percentage point increase in recovery above that level.
The FRP is the base price for sugar cane that mills must pay farmers. Certain States, however, announce a State Advised Price (SAP) which is usually higher.