Lok Sabha Question No. 2546 (UNSTARRED), answered on 2016-05-10
Subject: FRP of Sugarcane
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: KANWAR SINGH TANWAR

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA UNSTARRED QUESTION NO. 2546 TO BE ANSWERED ON 10 th   MAY, 2016

## FRP OF SUGARCANE

## 2546. SHRI KANWAR SINGH TANWAR:

Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) the details of the factors taken into account for finalising the Fair and Remunerative Price (FRP) of sugarcane and the institutions involved for the purpose;
- (b) whether  the  Government  has  received  requests/representations  for hiking the FRP of sugarcane during the current sugar season and if so, the details thereof and the reaction of the Government thereto;
- (c) whether the Government has issued any advisories/directives to the States for ensuring remunerative price to sugarcane farmers and if so, the details thereof and the reaction of the States thereto; and
- (d) whether the Government proposes to hike the import duty on sugar to protect the interest of domestic sugar industry and sugarcane farmers and if so, the details thereof?

## A N S W E R

## MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAM  VILAS PASWAN)

(a): The Central Government fixes Fair and Remunerative Price (FRP) of sugarcane  having  regard  to  the  factors  mentioned  in  Clause  3(1)  of  the Sugarcane  (Control)  Order,  1966  viz.,  cost  of  production  of  sugarcane; return  to  the  growers  from  alternative  crops  and  the  general  trend  of prices of agricultural commodities; availability of sugar to consumers at a fair price; price at which sugar produced from sugarcane is sold by sugar producers; recovery of sugar from sugarcane; realization made from sale of by-products viz. molasses, bagasse and press mud or their imputed values; and reasonable margins for the growers of sugarcane on account of risk and  profits.  The  FRP  so  fixed  is  based  on  the  recommendations  of  the Commission for Agricultural Costs and Prices (CACP) and after consultations  with  State  Governments  and  other  stakeholders.  FRP  of sugarcane, linked to recovery rate, is uniform throughout the country.

(b): Representations from Bhartiya Kisan Union and Indian Farmer Organisation of Uttar Pradesh seeking fixation of FRP of sugarcane for the sugar season 2015-16 respectively at Rs. 350 per quintal and Rs. 300 per quintal  have  been  received.  There  is  no  proposal  to  revise  the  FRP  of sugarcane for the current sugar season 2015-16 which has already been fixed at Rs. 230 per quintal at basic recovery rate of 9.5% with a premium of  Rs.  2.42  per  quintal  for  every  incremental  increase  of  0.1%  in  the recovery rate.

(c): There  are  standing  provisions  in  the  form  of  Clause  3(2)  of  the Sugarcane  (Control) Order, 1966  according to which  the FRP  is a benchmark  guaranteed  price  of  sugarcane  determined  by  the  Central Government below which no sugar mill can purchase sugarcane from cane growers.

(d): No, Madam. Does not arise.

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