A higher CUET score requires a stronger aptitude. Enrol in the General Aptitude Test Online Course for just ₹100!




 02-May-2025

Fair and Remunerative Price (FRP)

Economics

Why in News? 

Cabinet Committee Approves Fair and Remunerative Price (FRP) for Sugarcane for the Sugar Season 2024-25 

About FRP (Fair and Remunerative Price) 

  • Definition: The FRP is the minimum price declared by the central government that mills are bound to pay to farmers for sugarcane procurement. This ensures that farmers receive a fair price for their produce. 
  • Legal Framework: The Sugarcane (Control) Order 1966 empowers the central government to determine the FRP of sugarcane and regulate the procurement process. 
  • Recommendation Basis: The FRP is determined based on the recommendations of the Commission for Agricultural Costs and Prices (CACP), which assesses various factors to ensure a fair price. 
  • State-specific Prices: Certain states, including Uttar Pradesh, Punjab, Haryana, and Uttarakhand, determine their own State Advised Price (SAP), which is often higher than the FRP set by the central government. This reflects regional demands and production costs.