Page 2 - Sugarcane Price

Sugarcane price arrears to farmers at nearly Rs 140 billion

The arrears for 2016-17 stood at ~9.03 billion and earlier years at Rs 16.86 billion

Sugarcane price hike by 11% to hit sugar mills' margin in FY18: Icra

According to Icra, the increase in sugarcane FRP is expected to raise the cost of sugar production

Sugar mills worried over hike in fair and remunerative price of sugarcane

Union Cabinet approving 10.87% hike in Fair and Remunerative Price (FRP) of sugarcane to Rs. 255/- per quintal for sugar season 2017-18 has made sugar milling industry worried as normal monsoon this year is expected to see bumper cane crop and sugar production could also rise sharply from last season's 20.3 million tons which is lowest after 2009-10 season. In current decade sugarcane FRP has increased 80 per cent while average sugar price has increased only 80 per cent.T Sarita Reddy, President Indian Sugar Mills Association (ISMA)said, "sugar prices are not rising in sync with sugarcane prices and with bumper sugar output possible in 17-18 season on the back of normal monsoon projections, sugar price likely to come down next season. At that time if price payable to farmers go up, it will be difficult to manage. We want farmers to get their remunerative price but also want sugarcane price linked with sugar price according to Rangarajan formula."Despite very low sugar production this .

Centre hikes sugarcane fair price by 10.6%

With sugar prices improving and helping mills, the central government announced it had raised its "Fair and Remunerative Price' of sugarcane for the 2017-18 season that starts from October by Rs 25 a quintal, to Rs 255 a qtl, the first increase in two years.This decision of the Cabinet Committee on Economic Affairs (CCEA) will impact about 50 million farmers. The FRP is a recommendation to states (which can raise it) on a minimum price that mills have to pay to cane farmers. It was kept unchanged at Rs 230 a qtl for the current 2016-17 year (October-September).CCEA also approved the raising of Rs 2,360 crore through bonds for renewable energy projects in this financial year.The cane price increase is likely to result in states which do ot adopt the Centre's FRP, such as Uttar Pradesh, raising their own minimum prices. UP, Punjab and Haryana fix their own 'State Advisory Price' (SAP), higher than the Centre's FRP.UP had fixed the SAP for the current 2016-17 year at Rs 305 and Rs 315 a .

Cabinet approves hike in sugarcane fair price by Rs 25 per quintal for FY18

Mills have to pay Rs 255 per 100 kg from Oct 2017