The Cabinet Committee on Economic Affairs has fixed the fair and remunerative price (FRP) of sugarcane — the minimum price that sugar mills must offer farmers — at ₹305/quintal for the next marketing season 2022-23. 
FRP is fixed to ensure a guaranteed price to sugarcane growers. 
The FRP of ₹305 has been fixed for a basic recovery rate of 10. 25%, which is the amount of sugar produced by crushing a given amount of sugarcane by weight. 
The government has also made a provision for a reduction in FRP by ₹3. 05 per quintal for every 0. 1 percentage point decrease in recovery. However, there shall not be any deduction in the case of sugar mills where recovery is below 9. 5%. Such farmers will get ₹282. 125 per quintal for sugarcane in the ensuing sugar season 2022-23 in place of ₹275. 50 per quintal in the current season. 
The government has also introdu-ced the concept of Minimum Selling Price (MSP) of sugar to prevent a fall in ex-mill prices of sugar and accumulation of cane arrears. The MSP was fixed initially at ₹29 per kg in 2018 which was revised to ₹31 per kg in 2019. The Indian Sugar Mills Association had requested the government to hike the MSP for sugar, saying the cost of raw material and machinery has increased.