Government today approved Rs 10 per quintal hike in the sugarcane price to Rs 220 per quintal for 2014-15 marketing year. "The Cabinet Committee on Economic Affairs has approved a proposal to increase the fair and remunerative price (FRP) for sugarcane by Rs 10 per quintal," Food Minister K V Thomas said.The FRP, which is the minimum price that mills need to pay to cane farmers, stands at Rs 210 per quintal in the ongoing 2013-14 marketing year (October September). The proposal moved by the Food Ministry was in the line with recommendations of statutory body, the Commission for Agricultural Costs and Prices which advises the government on pricing policy for major farm produce.Although centre fixes the FRP, state governments are free to fix their own statutory advised price (SAP) and millers can also offer any price above the FRP.The FRP is fixed after taking into consideration the margins for sugarcane farmers, based on the cost of production of sugarcane, including the cost of transportation.Government has pegged sugar output at 24.1 million tonnes for the 2013-14, lower than 25 million tonnes achieved in the previous year.India is the world's second largest producer of sugar after Brazil. However, the country is the biggest consumer of the sweetener. Annual domestic demand of the sugar is estimated at 23 million tonnes.
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