FRP stand for Fair and Remunerative Price, which is the minimum price that sugar mills are legally required to pay to sugarcane farmers for their crop.

Key Points:

• The Cabinet Committee on Economic Affairs, Government of India, fixes the FRP every year based on recommendations from the Commission for Agricultural Costs and Prices.

• Sugar mills must pay at least the FRP. Paying less is illegal.

• To protect farmers from exploitation and ensure they get a fair income for growing sugarcane.

• Factors considered while fixing FRP are the cost of production, Return on investment for farmers, Market price of sugar, and Recovery rate of sugar from cane

• FRP is linked to a basic sugar recovery rate of currently 10.25 percent. If a mill gets a higher recovery, farmers get a higher price.

FRP ensures price stability and income security for millions of sugarcane farmers across India.