Explained: What is the Fair and Remunerative Price

As the Indian government increases the Fair and Remunerative Price (FRP) for sugarcane by 8% to ₹340 per quintal for 2024-25, the hike is expected to benefit over 5 crore sugarcane farmers! But this could also lead to an increase in production costs for sugar mills, potentially affecting end-consumer prices. The FRP is a system introduced in 2009 to ensure timely payments to sugarcane farmers, regardless of the profit or loss of sugar mills. It replaces the Statutory Minimum Price (SMP) and includes grading based on the sugar recovery rate.

Source: Forbes India

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