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ISMA says government should accept recommendations of CACP in total

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The government should accept the recommendations of Commission for Agricultural Costs and Prices (CACP) to increase the minimum price that sugar mills are are required to pay to cane growers in total, said Indian Sugar Mills' Association (ISMA).

The government should accept the recommendations of Commission for Agricultural Costs and Prices (CACP) to increase the minimum price that sugar mills are are required to pay to cane growers in total, said Indian Sugar Mills' Association (ISMA).
The CACP is a statutory body that advises the government on the pricing policy for major farm produce.
In an interview to CNBC-TV18, Abinash Verma, director general, said, “We are unable to afford even Rs 255 per quintal at 9.5 percent recovery and therefore, Rs 275 per quintal of sugarcane at 10 percent is obviously more unaffordable.”
According to Verma, ISMA made representations to the government to link the sugarcane price to revenue realisation from sugar and the by-products, “Unless that happens, it continues to be unaffordable and becomes unviable slowly and slowly.”
Verma said government continues to fix a price called the fair and remunerative price (FRP) as recommended by CACP.
What Is FRP Price?
The FRP, which is the minimum price that sugar mills have to pay to sugarcane farmers, is Rs 255 per quintal for the 2017-18 season.
At present, the FRP price is linked to a basic recovery rate of 9.5 per cent, subject to a premium of Rs 2.68 per quintal for every 0.1 per cent point increase in recovery rate.
“If the sugar prices remain at the current level, the government has announced Rs 9 as the minimum sugar price and if I calculate at Rs 29, the best price that we can afford is almost about Rs 20-25 per quintal, less than current FRP, if Rs 255. So, if you are going to add another Rs 20, it’s going to become more unaffordable,” Verma added.