In order to provide remunerative price for sugarcane to
the farmers, Sugarcane (Control) Order
1966 was further amended on 22nd October, 2009 by which reasonable
margins to the growers of sugarcane on account of risk and profits are also to
be considered in the price of sugarcane to be fixed by the Central
government. Powers were given to the
Central Government to fix a fair and remunerative price (FRP) after giving
margins for profit and risk on cost of production and transportation of sugarcane
upfront. Accordingly, the FRP payable by
sugar mills for 2009-10 sugar season was fixed at
Rs.129.84 per quintal, linked to a basic recovery rate of 9.5% subject to a
premium of Rs.1.37 for every 0.1 percentage point increase in recovery above
9.5%. The FRP for 2009-10 sugar season was
50.5% higher than the all India weighted average cost of production and
transportation of Rs.86.27 per quintal at 9% recovery rate and therefore gives
adequate margin to the farmers. It was
also about 51% higher than the SMP for sugarcane at Rs.81.18 per quintal for
2008-09 sugar season at 9.0% basic recovery rate projected for 9.5% recovery.
SMP/FRP fixed during the last three years is as
under:
Sugar
Season SMP/FRP Linked to basic
recovery rate
2008-08 (SMP) 81.18 9%
2009-10 (FRP) 129.84 9.5%
20010-11(FRP) 139.12 9.5%
The Government, after careful consideration, on the
recommendations of Commission for Agricultural Costs and Prices (CACP) will fix
FRP for the year 2011-12 sugar season keeping in view
the following:
i) the cost of production;
ii) need
for ensuring availability of sugar to consumers at a fair price; and
iii)to
obviate any disproportionate diversion of area from foodgrains
to sugarcane that may affect the food security of the country.
This
information was given by Prof. K.V. Thomas, Minister of State for Agriculture,
Consumer Affairs, Food & Public Distribution, in written reply to a
question in the Lok Sabha
today.
MP: SB:CP:smpsugarcane
(7.12.2010)