Government approves hike in fair price for sugarcane crop

The Union Cabinet has approved a FRP hike of Rs. 20 per quintal of sugarcane brought by mills. The sugar mills will now have to pay Rs. 275 for every quintal of sugarcane.

The Fair and Remunerative Price (FRP) for 2018-19 season, that is, applicable from the next marketing year starting October 2018 is Rs 275 per 100 kg. FRP is the minimum price that sugar owners have to pay to farmers.

Earlier, the Indian Sugar Mills Association (ISMA) announced that there will be record ouput of sugarcane this year. For the marketing season ending September 30, India will have an inventory of 10 million tonnes, which is an increase of 3.87 million tonnes as compared to the same period year ago.

Most sugar stocks were trading the red zone during Wednesday's trade. The stock of EID-Parry closed at Rs. 213.70 per share, down by 0.86 per cent, Balrampur Chini Mills was at Rs. 63.30, down by 2.54 per cent, Dhampur Sugar Mills was at Rs. 78.30, down 0.82 per cent, Uttam Sugar Mills Rs. 69.70, down by 1.83 per cent. While South-based Ponni Sugars traded in the green, closing at Rs. 119.80 per share, up by 4.17 per cent on Wednesday, on BSE.