Centre hikes fair price for sugarcane to Rs139.12 per quintal

The central government has increased the fair and remunerative price (FRP) of sugarcane to Rs139.12 per quintal for the year 2010-11, from Rs129.84 per quintal in 2009-10, minister of state for agriculture, consumer affairs, food and public distribution K V Thomas informed the Lok Sabha in a written reply.

The FRP is based on the cost of production of sugarcane, which includes all actual expenses in cash and kind incurred in production by owner, interest on value of owned capital assets (excluding land), rental value of owned land and rent paid for leased land and imputed value of family labour.

The actual cost of production varied from Rs48.46 per quintal in Karnataka to Rs106.06 per quintal in Andhra Pradesh during 2007-08.

In Andhra Pradesh, the FRP for sugarcane had gone down from Rs96.08 per quintal in 2005-06 to Rs88.71 per quintal in 2006-07 and had since gone up to Rs106.06 per quintal in 2007-08.

In Haryana, however, the FRP for sugar cane had gone up steadily from Rs90.48 per quintal in 2005-06 to Rs92.37 per quintal in 2006-07 and further to Rs96.52 per quintal in 2007-08.
 
In Karnataka, on the other hand, sugarcane FRP had steady fallen from Rs73.83 per quintal in 2005-06 to Rs63.62 per quintal in 2006-07 and further to Rs48.46 per quintal in 2007-08.
In Maharashtra also sugarcane FRP had steadily fallen from Rs94.91 per quintal in 2005-06 to Rs80.15 per quintal in 2006-07 and further to Rs76.29 per quintal in 2007-08.
 
In Tamil Nadu, the FRP for sugarcane increased from Rs77.30 per quintal in 2005-06 to Rs78.22 per quintal in 2006-07, but had since fallen to Rs73.45 per quintal in 2007-08.
 
In Uttar Pradesh, sugarcane FRP, which stood at Rs68.86 per quintal in 2005-6 declined marginally to Rs68.49 per quintal in 2006-07, but had since risen to Rs73.35 per quintal in 2007-08.
 
In Uttrakhand, it was Rs58.03 per quintal in 2005-05, Rs66.37 per quintal in 2006-07 and Rs57.77 per quintal in 2007-08.