Punjab Cooperation Minister Sukhjinder Singh Randhawa on Wednesday said that there had been "meagre" hike in Fair and Remunerative Price (FRP) of sugarcane announced by the central government.
In a release, he said the Union Government should announce bonus at the rate of Rs 70 per quintal in addition to the already announced price to save the sugarcane cultivators "already reeling under the burden of inflated costs during COVID-19 pandemic".
He said bonus must be credited directly into the accounts of the farmers.
"States like Punjab having less recovery rate have also been discriminated against with the Union Government fixing Rs 270.75 per quintal price based on 9.5 per cent recovery," he said.
The minister said that the Punjab Government is paying SAP (state advised price) of Rs 310 to compensate farmers.
He said the Centre's decision has also "dealt a major blow" to the campaign for crop diversification, especially for Punjab which has a recovery rate of less than 10 per cent.
The Cabinet Committee on Economic Affairs on Wednesday approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September).The FRP has been approved on the recommendations of the Commission for Agricultural Costs and Prices (CACP).An official release said that FRP of sugarcane for 2020-21 sugar season will be Rs 285 per quintal for a basic recovery rate of 10 per cent and a premium of Rs. 2.85 per quintal would be paid for every 0.1 per cent increase above 10 per cent in the recovery.
There will be a reduction in FRP by Rs 2.85 per quintal for every 0.1 percentage point decrease in recovery, in respect of those mills whose recovery is below 10 per cent but above 9.5 per cent.However, for mills having recovery 9.5 per cent or below, the FRP is fixed at Rs 270.75 per quintal.
"The determination of FRP will be in the interest of sugarcane growers keeping in view their entitlement to a fair and remunerative price for their produce," the release said.
Fair and Remunerative price of sugarcane is determined under Sugarcane (Control) Order, 1966.
( With inputs from ANI )
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