Centre hikes sugarcane support price by Rs 10
- Indian Masterminds Bureau
- Published on 19 Aug 2020, 2:05 pm IST
- 2 minutes read
The Cabinet Committee took final stances on various decisions after the cabinet meeting that took place today. Sugar cane prices and power sector dues are a couple of them.
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, has approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2020-21 sugar season (October-September) on the recommendations of the Commission for Agricultural Costs and Prices (CACP).
The FRP for 2020-21 sugar season at Rs.285 per quintal for a basic recovery rate of 10%. A premium of Rs. 2.85 per quintal for every 0.1% increase above 10% in the recovery and 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% but above 9.5 per cent. However, for mills having recovery 9.5 % or below, the FRP is fixed at Rs 270.75 per quintal. The government had fixed sugarcane FRP at Rs 275 per quintal for the current 2019-20 marketing year. Hence the support price has been raised by Rs 10 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 Cabinet Committee on Economic Affairs has also approved a one-time relaxation to Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) for extending loans to Distribution Companies (DISCOMs) above limits of working capital cap of 25% of last year’s revenues under Ujwal DISCOM Assurance Yojana (UDAY).
This comes as a relief due to the pandemic and hence extended lockdowns creating liquidity problems for the power sector.
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