Important Facts For Prelims
Fair and Remunerative Prices for Sugarcane
- 25 Jul 2019
- 2 min read
The Union Cabinet has cleared a proposal to create an emergency sugar reserve of 4 million tonne and approved the Fair and Remunerative Prices for sugarcane for the year 2019-20.
Sugar Industry
- Sugar industry is an important agro-based industry that impacts rural livelihood of about 50 million sugarcane farmers and around 5 lakh workers directly employed in sugar mills.
- India is the world’s second largest sugar producer after Brazil and also the largest consumer.
Price Determination of Sugarcane
- Sugarcane prices are determined by:
- Federal Government
- State Government
- The Federal/Central Government announces Fair and Remunerative Prices which are determined on the recommendation of the Commission for Agricultural Costs and Prices (CACP) and are announced by the Cabinet Committee on Economic Affairs, which is chaired by Prime Minister.
- The State Advised Prices (SAP) are announced by key sugarcane producing states which are generally higher than FRP.
Commission for Agricultural Costs and Prices (CACP)
- The Commission for Agricultural Costs and Prices (CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India. It came into existence in January 1965.
- It is an advisory body whose recommendations are not binding on Government.
