The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal in respect of Determination of ‘Fair and Remunerative Price’ of sugarcane payable by sugar mills for 2019-20 sugar season.
The Cabinet has also approved the creation of buffer stock of 40 lakh Metric Tonnes of sugar for one year from the 1st of next month.This will lead to an improvement in the liquidity in sugar inventories and stabilization in sugar prices
The Fair and Remunerative Price(FRP) is the minimum price that sugar mills have to pay to sugarcane farmers.
FRP is determined by the Central Government on the basis of the recommendations of the Commission for Agricultural Costs and Prices(CACP).
The final FRP is arrived by taking into account various factors such as cost of production,domestic and international prices,overall demand supply situation,inter-crop price parity among others.
Cabinet Committee on Economic Affairs(CCEA) is one of the standing committees of cabinet constituted by government of india.The committee is headed by the Prime Minister.
The major function of the CCEA is to review economic trends on a continuous basis as also the problems and prospects with a view to evolve a consistent and integrated economic policy framework for the country.
The Commission for Agricultural Costs and Prices(CACP) is an attached office of the Ministry of Agriculture and Farmers Welfare, Government of India.It came into existence in January 1965.It is an advisory body whose recommendations are not binding on Government.