The Commission for Agricultural Costs and Prices (CACP) has recommended Rs 20 per quintal hike in the fair and remunerative price (FRP) of sugarcane at Rs 275 per quintal for the next 2018-19 season. The hike in FRP is after factoring in cost of production, transportation and crop insurance premium and other expenses. The FRP, the minimum price sugar mills have to pay to farmers, has been fixed at Rs 255 per quintal for the 2017-18 season that starts from this month.
The proposed increase is also likely to result in states like Uttar Pradesh that do not follow the centrally-announced FRP raising their own advisory prices. Major sugarcane producing states such as Uttar Pradesh, Punjab and Haryana fix their own sugarcane price called State Advisory Prices (SAPs), which are usually higher than the centre's FRP.
As per the first estimate released by the agriculture ministry, the sugarcane output this year is estimated to be higher at 337.68 MT as against 306.73 MT in 2016-17 crop year on account of good rains.