Sugarcane FRP Increases: The Indian Sugar Mills Association (ISMA), an organization of sugar mills in the country, has said that the increase in the FRP (fair and remunerative price) of sugarcane by Rs 5 per quintal will not put much burden on the mill owners, but it has reduced the minimum price of sugar. Demand has been made to increase the selling price to Rs 35 per kg. At present, this price is Rs 31 per kg. ISMA has said that this will solve the problem of liquidity of the mill owners.
Mill owners said, the minimum selling price of sugar increased
Earlier, the government had announced an increase of Rs 5 per quintal in the FRP of sugarcane. In order to increase the income of five crore sugarcane farmers of the country, the government has increased the FRP of sugarcane to Rs 290 per quintal. Director General of Indian Sugar Mills Association (ISMA) Abinash Verma said that the hike in FRP of sugarcane by Rs 5 per quintal will not burden mill owners much but the government should also increase the minimum selling price of sugar. He said that during the current financial year, the FRP of sugarcane has been increased by 1.75 per cent, which is quite reasonable. Last time the ARP of sugarcane was increased from Rs 25 to 40 per quintal.
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Demand for raising the price of sugar to Rs 34-35 a kg
Verma said that the government has increased the FRP but sugarcane mill owners are expecting to increase the minimum selling price of sugar as well. This will help them in clearing the arrears of sugarcane farmers. The GoM, NITI Aayog, the Committee of Secretaries and several state governments had asked to increase the minimum selling price of sugar between March and July 2020. He said that it is expected that the government will increase the minimum selling price of sugar from Rs 34.50 to Rs 35.