The union government in India has approved a proposal to increase the minimum price guaranteed to sugarcane farmers by 23.5 per cent to Rs. 210 per quintal for a period of one year from October, 2013.

The government increased the Fair and Remunerative Price (FRP), for sugar in the country after recommendations of a panel. The FRP for sugarcane in the 2012-13 marketing year is Rs. 170 per quintal. The FRP is a minimum rate announced by the government for sugar canebut some states like Uttar Pradesh and Tamil Nadu announce their own much higher minimum prices that are called, state advisory price (SAP).

Food Minister K V Thomas announced that Cabinet Committee on Economic Affairs (CCEA) has approved sugarcane FRP for 2013-14 at Rs. 210 per quintal. The FRP of Rs. 210 per quintal for sugar cane this year is Rs. 40 per quintal higher than the previous year. The CECA approved the proposal from the food ministry that was based on the recommendations of the Commission for Agricultural Costs and Prices (CACP).

Mr Thomas expressed that the government has revised the forecast for total sugar production in the current marketing year to 24 million tonnes from 23.5 million tonnes. On the other hand, industry body ISMA estimated 24.2 million tonnes production in the current year.