14 Nov Fair and Remunerative Prices and State Advisory Price

State Advisory Price

Details on “State Advisory Price”

Relevance for Prelims: CCEA, Sugarcane Pricing

Relevance for Mains: None

Context: Uttar Pradesh, which has the highest State Advisory Price (SAP) has recently denied the proposal to increase SAP for sugar cane.

Pic: State Advisory Price (SAP)

Pricing of Sugarcane:

• FRP is the price declared by the government, which mills are legally bound to pay to farmers for the cane procured from them.
• The payment of FRP is governed by the Sugarcane Control order, 1966 issued under the Essential Commodities Act, 1955 which mandates payment within 2 weeks of the date of delivery of the sugarcane.
• The FRP is recommended by the Commission for Agriculture Costs and Prices (CACP) and announced by Cabinet Committee on Economic Affairs (CCEA). CCEA is chaired by Prime Minister.
• The FRP is based on the Rangarajan Committee on reorganizing the sugarcane industry. It is noteworthy that, unlike others, Sugarcane is the only crop that has legal backing.

About State Advised Price (SAP):

• The State Advised Price (SAP) is announced by the Governments of key sugarcane-producing states. State Advised Price (SAP) is generally higher than FRP.

About Sugarcane: 

• Top Sugarcane Producing States: Uttar Pradesh, Maharashtra, Karnataka
• Rainfall: Around 75-100 cm.
• Soil Type: Deep rich loamy soil.
• Temperature: Hot and Humid Climate 21-27 degrees C
• India is the second largest producer of Sugarcane in the world followed by Brazil and Cuba.

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Source: The Times of India 

Rishabh