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Fair and Remunerative Price (FRP)
Fair and Remunerative Price – FRP is the price declared by the government, which mills are legally bound to pay to farmers for the cane procured from them.
Mills have the option of signing an agreement with farmers, which would allow them to pay the FRP in instalments.
Delays in payment can attract an interest up to 15% per annum, and the sugar commissioner can recover unpaid FRP as dues in revenue recovery by attaching properties of the mills.
The payment of FRP across the country is governed by the Sugarcane Control order, 1966 issued under the Essential Commodities Act (ECA), 1955 which mandates payment within 14 days of the date of delivery of the cane.
It has been determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and announced by the Cabinet Committee on Economic Affairs (CCEA).
The FRP is based on the Rangarajan Committee report on reorganising the sugarcane industry.
Read Also Minimum Support Price (MSP)