NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) on Friday approved the revised fair and remunerative price (FRP) of sugarcane payable by sugar mills to farmers at Rs 230 per quintal. This will be applicable for 2015-16 starting this October. At present, the FRP is Rs 220.

Though Centre fixes the FRP every year and there has been similar Rs 10 increase per quintal in the past few years, the state governments are free to fix the price on their own. Usually, the minimum rates fixed by state governments are much higher.

The apex body of sugar producers, ISMA, is critical of this increase. "It will be a challenge for the sugar mills to be able to pay the FRP of Rs 230 per quintal of sugarcane linked to 9.5% sugar recovery in 2015-16 sugar season unless and until the ex-mill sugar prices improve from the current all India average of Rs 2,500-2,600 per quintal of sugar to Rs 3,400-3,500 per quintal," ISMA statement said.