Sugar production fallen

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.