(a) whether the benefits of the increasing sugar prices are not reaching the farmers;
(b) if so, the details thereof indicating the price of sugar in the open market and
price paid for procurement of sugarcane in the country including Maharashtra during each of the last three years and the current year, State-wise; and
(c) the remedial measures taken to ensure that the benefits of price rise reaches the
farmers?
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(c): Prior to sugar season 2009-10, the Central Government was fixing the
Statutory Minimum Price (SMP) of sugarcane. However, the Central Government has amended the
Sugarcane (Control) Order, 1966 vide Notification dated 22.10.2009 to provide for reasonable
margins for the growers of sugarcane on account of risk and profits and fixed the ‘Fair and
Remunerative Price (FRP)’ of sugarcane for 2009-10 sugar season at Rs.129.84 per quintal,
linked to a basic recovery rate of 9.5% subject to a premium of Rs. 1.37 for every 0.1
percentage point increase in recovery above that level. The FRP has been fixed on the
recommendation of the Commission for Agricultural Costs & Prices (CACP) taking into
account various factors including the price at which sugar produced from sugarcane
is sold by producers of sugar. However, some sugarcane producing States have fixed
the State Advised /Agreed Price (SAP) of sugarcane which is higher than FRP as indicated
below: –
State SAP ( in Rs. Per quintal)
Punjab 175 ( Mid varieties) Haryana 180 ( Mid varieties) Uttar Pradesh 165(Other varieties) Tamil Nadu Rs.143.74 per quintal linked to 9.5% with increase of Rs.1.13 for every 0.1% point increase in recovery above 9.5%.