Press Information Bureau
Government of India
Ministry of Consumer Affairs, Food & Public Distribution
08 DEC 2021 4:18PM by PIB Delhi
FRP for sugar season 2021-22 has been fixed at Rs. 290 per quintal linked to a basic recovery of 10%

The Union Minister of State for Consumer Affairs, Food and Public Distribution, Ms Sadhvi Niranjan Jyoti in a written reply to a question in Lok Sabha today informed that Fair and Remunerative Price (FRP) for sugar season 2021-22 has been fixed at Rs. 290 per quintal linked to a basic recovery of 10% subject to a premium of Rs. 2.90 per quintal for each 0.1% increase of recovery over and above 10% and reduction in FRP at the same rate for each 0.1% decrease in the recovery rate till 9.5%. 

With a view to protect interest of farmers associated with sugar mills having recoveries lower than 9.5%, the Government has decided that there shall not be any deduction in case where recovery is below 9.5%; such farmers will get Rs. 275.50 per quintal for sugarcane in the current sugar season.

FRP of sugarcane is fixed to ensure a guaranteed price to sugarcane growers. This would encourage farmers to cultivate sugarcane and would facilitate continued operation of sugar factories and thus would encourage domestic manufacturing of sugar. The FRP is paid by sugar factories to the sugarcane growers against supply of sugarcane. About 5 crore people, i.e. sugarcane farmers and their families, will be benefited by this proposal.  Thousands of farm labours are associated with the cane growers and thus payment of FRP to the growers directly benefits them.  Secondly, there are about five lakh workers employed in the sugar factories and ancillary activities and their livelihood depends on regular supply of sugarcane by the growers. Fixation of FRP of sugarcane facilitates adequate production and thus availability and supply of cane to sugar factories.