Fair and remunerative price
Also called: FRP · Topic: Agricultural Marketing, MSP, Buffer Stocks and PDS · NCERT: Beyond NCERT
Meaning
The fair and remunerative price (FRP) is the minimum price that sugar mills are legally bound to pay farmers for sugarcane. The Centre fixes it under the Sugarcane (Control) Order 1966, as amended in 2009. Because the law backs it, a mill cannot pay less than the FRP. This protects cane farmers, who can sell only to nearby mills and have little bargaining power.
Example
A cane farmer in Maharashtra delivers cane to the local sugar mill. The mill must pay at least the FRP announced by the Centre for that season. Paying less breaks the law.
Don't confuse with
- Minimum support price (MSP): MSP has no statutory (legal) backing. It is only a government promise to buy notified crops. FRP is legally binding on mills. Sugarcane has an FRP, not an MSP.
- State advised price (SAP): SAP is a higher cane price that some states announce on top of the FRP.