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Sugar production fallen

  • IASbaba
  • January 3, 2020
  • 0
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Sugar production fallen

Part of: GS Prelims and GS III- Economy

In News

  • The country’s sugar production has fallen sharply by 30.22% to 7.79 million tonne (MT) in the first three months of current marketing year ending September
  • Sugar production has been pegged lower at 26 MT this year from 33.16 MT in 2018-19.
  • The average sugar recovery in Maharashtra has declined to 10% from 10.5% achieved in the year-ago period due to loss of sucrose content in the flood-affected sugarcane crop

Value Addition for Prelims

  • Price of sugarcane is fixed by the centre/State, while the price of sugar is market determined
  • Fair and remunerative price (FRP) is the minimum price at which rate sugarcane is to be purchased by sugar mills from farmers
  • The FRP is fixed by Union government on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP). 
  • FRP assures margins to farmers, irrespective of whether sugar mills generate a profit or not. 
  • This will be uniformly applicable all over the country. Besides FRP, some states such as Punjab, Haryana, Uttarakhand, UP and TN announce a State Advised Price, which is generally higher than the FRP. 

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