(a) whether the Commission for Agricultural Cost and Prices has sent any of income
from Ethanol and production of electricity in fixing the price of sugarcane;
(b) if so, whether the Government proposes to include the said proposal while fixing the
sugarcane price during 2011-12;
(c) if so, the details thereof; and
(d) if not, the reasons therefor?
MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF
CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION(PROF. K.V. THOMAS)
(a) to (d): The Central Government determines the fair and remunerative price (FRP) of
sugarcane in terms of Clause 3 of the Sugarcane (Control) Order, 1966 w.e.f. 1.10.2009.
The FRP is determined on the basis of the recommendations of the Commission for Agricultural
Costs and Prices (CACP) after consulting the State Governments and representative bodies of
stakeholders.
The recommendations of CACP for 2011-12 for determination of FRP for sugarcane payable
to sugar farmers have been received. The CACP has been requested as to whether while
recommending the FRP for 2011-12 sugar season, the Commission has also considered the value on
account of sale of by-products viz. molasses, bagasse and pressmud which have been worked out
in the recommendations.
While determining the FRP for 2011-12 sugar season, the recommendations of the CACP
will be taken into consideration in accordance with the provisions of the Sugarcane (Control)
Order, 1966, in respect of determination of fair and remunerative price of sugarcane.
Clause 3(1) of the Sugarcane (Control) Order, 1966, provides as under:
3. Fair and remunerative price of sugarcane payable by producer of sugar:
(1) The Central government may, after consultation with such authorities, bodies or
associations as it may deem fit, by notification in the Official Gazette, from time to time,
fix the fair and remunerative price of sugarcane to be paid by producers of sugar or other
agents for the sugarcane purchased by them, having regard to-
(a) ........... (e)
#(f) the realization made from sale of by products viz. molasses, bagasse and press mud or
their imputed value
#(inserted vide S.O.2984(E).-/Ess.Com./Sugarcane dated 29.12.2008