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Fair and Remunerative Price (FRP)

Sugarcane Pricing Framework

The Fair and Remunerative Price (FRP) is the minimum price that sugar mills are legally required to pay cane growers, replacing the earlier Statutory Minimum Price (SMP) framework from the 2009-10 sugar season onward. FRP is determined under the Sugarcane (Control) Order, 1966, issued under the Essential Commodities Act, 1955, based on recommendations of the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs (CCEA).

Key details
  • Statutory basis: Sugarcane (Control) Order, 1966, under the Essential Commodities Act, 1955.
  • FRP replaced SMP starting the 2009-10 sugar season; mills must pay FRP to growers within 14 days of cane delivery.
  • Recommending body: CACP; approving body: CCEA (chaired by the Prime Minister) — distinct from MSP for foodgrains, though both use CACP as the recommending body.
  • FRP is linked to a base sugar recovery rate, with a premium/discount for recovery above/below this base — distinguishing it from a flat per-quintal price.
In the news

● Tracked since May 05, 2026 · last seen August 23, 2026 · updates as the daily brief publishes

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