Fair and Remunerative Price (FRP)

Fair and Remunerative Price (FRP) The Cabinet Committee on Economic Affairs (CCEA), chaired by PM has approved the FRP for sugarcane for the upcoming 2025–26 sugar season.

• About FRP: The minimum statutory price that sugar mills must pay to sugarcane farmers in India.

o It is fixed by the Government of India based on the recommendations of the Commission for Agricultural Costs and Prices (CACP – under MoA&FW) to ensure farmers receive fair returns.

o Considering factors: Cost of production, reasonable profit margins, and the demand-supply situation,

ü Return to growers from alternative crops & general trend of prices of agricultural commodities,

ü Availability of sugar to consumers at a fair price,

ü Price at which sugar produced from sugarcane is sold by sugar producers, recovery of sugar from sugarcane,

ü Realization made from sale of by-products viz. molasses, bagasse, press mud.

o Introduction: In 2009 and replaced the Statutory Minimum Price (SMP) with the amendment of the Sugarcane (Control) Order, 1966.

o It is based on the Rangarajan Committee report of reorganizing the sugarcane industry.