Fair and Remunerative Price (FRP)

  • The FRP is the minimum price that sugar mills have to pay to sugarcane farmers.
  • It is determined on basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stake-holders.
  • The final FRP is arrived by taking into account various factors such as cost of production, domestic and international prices, overall demand-supply situation, inter-crop price parity, terms of trade prices of primary by-products and its impact on general price level and resource use efficiency.


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