Govt approves Rs.285/- per quintal of sugarcane payable by sugar mills for season 2020-21

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi, has approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September) on the recommendations of the Commission for Agricultural CostsCosts Subject to any written law, costs are at the discretion of the Court, and the Court has the power to determine all issues relating to the costs of or incidental to all proceedings, including by whom and to what extent the costs are to be paid, at any stage of the proceedings or after the conclusion of the proceedings. Generally “Costs” includes charges, disbursements, expenses, fees, and remuneration. Costs in any matter are payable from the date of the order of the Court unless the parties otherwise agree. The costs of a third-party funding contract are not recoverable as part of the costs of, or costs. and Prices (CACP) asunder:

i) FRP of sugarcane for 2020-21 sugar season at Rs.285/- per quintal for a basic recovery rate of 10%;

ii) a premium of Rs. 2.85 per quintal for every 0.1% increase above 10% in the recovery; and

iii) reduction in FRP by Rs. 2.85 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10% but above 9.5 percent. However, for mills having recovery 9.5 % or below, the FRP is fixed at Rs 270.75 per quintal.

The determination of FRP will be in the interest of sugarcane growers keeping in view their entitlement to a fair and remunerative price for their produce.

The ‘Fair and Remunerative price’ of sugarcane is determined under Sugarcane (Control) Order, 1966. This will be uniformly applicable all over the country.