What is FRP in Sugar Industry?
Asked By : yash heda
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:
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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.
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Sugar mills must pay at least the FRP. Paying less is illegal.
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To protect farmers from exploitation and ensure they get a fair income for growing sugarcane.
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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
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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.
2026-05-07 13:34:33
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