Fair and Remunerative Price (FRP)

The FRP is the minimum price that sugar mills have to pay to sugarcane farmers.

It has been determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and announced by the Cabinet Committee on Economic Affairs (CCEA). State government and other stake holders are also consulted by CACP.

The final FRP is arrived by taking into account various factors such as cost of production, domestic and international prices, overall demand-supply situation, inter-crop price parity, terms of trade prices of primary by-products and its impact on general price level and resource use efficiency.

The payment of FRP across the country is governed by the Sugarcane Control order, 1966 issued under the Essential Commodities Act (ECA), 1955 which mandates payment within 14 days of the date of delivery of the cane.

The FRP is based on the Rangarajan Committee report on reorganizing the sugarcane industry.