CCEA approves increase in FRP of Sugarcane by Rs 10 for 2020-21

The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal made by the food ministry to increase the Fair and Remunerative Price (FRP) by Rs 10 for the next marketing year, starting in October 2020.

The FRP of Sugarcane will increase from 275 to 285 per quintal.

The initiative has been taken after the recommendation of the Commission of Agricultural Costs and Prices (CPACP).

What is FRP?

Fair and Remunerative Price is the minimum price, to be paid by the sugar mills to the farmers for their sugarcane. It is determined under Sugarcane (Control) Order, 1966.

What is the state advisory price?

State advisory price is the price fixed by the sugarcane producing states on their own. It is usually higher than the Fair and Remunerative Price. The states of Uttar Pradesh, Punjab and Haryana have their own SAPs.

What is the function of the Commission for Agricultural Costs and Prices?

It is a decentralized agency and a statutory body of the Government of India, which was established as the Agricultural Prices Commission in 1965. The objective of the agency is to recommend Minimum Support Prices for the overall growth of the agricultural sector.

Cabinet Committee on Economic Affairs

The major function of the CCEA includes the review of economic trends on a continuous basis, as well as the problems and prospects, with a view to evolving a consistent and integrated economic policy framework for the country.

Month: Current Affairs - August, 2020