What is Fair and remunerative price?

1 min read
Prelims: Indian Economy
What is Fair and remunerative price? Blog Image

About Fair and remunerative price (FRP):

  • What is it? Fair and remunerative price (FRP) is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers. 
  • Who determines it? The FRP is fixed by Union government (Cabinet Committee on Economic Affairs (CCEA)) on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP). 
  • Rules: The ‘FRP’ of sugarcane is determined under Sugarcane (Control) Order, 1966. 
  • Methodology: Recommended FRP is arrived at by taking into account various factors (cost of production, demand-supply situation, domestic & international prices, inter-crop price parity etc. 
  • Benefits: FRP assures margins to farmers, irrespective of whether sugar mills generate a profit or not. 
  • This will be uniformly applicable all over the country. Besides FRP, some states such as Punjab, Haryana, Uttarakhand, UP and TN announce a State Advised Price, which is generally higher than the FRP. 


Q1) What is the suitable condition for Sugarcane cultivation?

Temperature: Between 21-27°C with hot and humid climate.

Rainfall: Around 75-100 cm.

Soil Type: Deep rich loamy soil.


Source: Haryana sugarcane farmers to hold State-wide protests seeking hike in support price