Vol. 10, Special Issue 11 (2021)

Author(s):
Neha Dwivedi and Dr. Ashoutosh Srivastava

Abstract:
The sugar Industry in India is highly regulated by state. Sugarcane Industry plays a very important role in for rural upliftment as about 5 million farmers are engaged in this industry directly or indirectly. The assured sugarcane prices play a crucial role in sugarcane production and area expansion under this particular crops. The central government fixes the Fair and Remunerative price (FRP) of sugarcane based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultations with State Governments and other stakeholders. The FRP is benchmark price below which no sugar mill can purchase from growers. The FRP has increased continuously since its inception despite of large surplus stock carried forward from previous years. The government has been prompted to hike the FRP in deficit years but has not decreased it in surplus years. During 2010-11 & 2017-18, despite excess production in almost years, the FRP for cane has nearly doubled from RS 139.12/quintal to Rs 255/quintal. Government needs to take some improved policy interventions to ensure timely assured prices to the farmers and fair shares and facilities to the sugar mills too, so that the issue large cane price dues from time to time can be resolved and direct links between FRP and demand-supply of sugar market can be maintained.