Centre raises sugarcane FRP by Rs 10 a quintal for 2020-21 season

Govt estimates over Rs 93,000 crore may flow into hands of sugarcane farmers in 2020-21 based on estimated output

The Union Cabinet on Wednesday decided to increase the minimum price sugar mills pay to sugarcane growers, also known as Fair and Remunerative Price (FRP), by Rs 10 per quintal to Rs 285 for the next marketing year starting October 2020, according to an official statement.

The FRP is linked to a basic recovery rate of 10 per cent.

The recovery rate is the amount of sugar that sugarcane fetches and higher the quantum of sugar derived from the cane, greater the price it fetches in the market.

In respect of sugar mills that have a recovery of more than 10 per cent,