Skip to main content

FRP

 Fair & Remunerative Price (FRP) is the minimum price that is to be paid by the sugar mills to the sugar farmers. The sugar mills are legally bound to pay FRP to the farmer for cane production. Mills have the option to sign an agreement that allow them to pay FRP in installment. Delay in payment attract up to 15% of interest per annum & the sugar commissioner can recover unpaid FRP as due revenue recovery by attaching properties of the mills. The FRP across the country governed under the sugar control act, 1966 issued under Essential Commodities act, 1955 which mandate the payment within 14 days of the date of delivery of the cane. FRP is determined on the recommendation of the Commission for Agricultural Costs & Prices (CACP) & announced by the Cabinet Committee on Economic Affair (CCEA). The FRP is based on the Rangarajan committee report on recognizing the sugar industries. 

Recently Maharashtra Government has introduced FRP in the state that allow sugar mills to pay Fair & Remunerative Price in 2 trenches. The first installment would have paid within 14 days of delivery cane & second installment within 15 days of the closure of the mills. 

The farmers in Maharashtra are not satisfied with the state government decision regarding FRP and they started protesting against the FRP. The farmer concerned with FRP is that it will impact their income as FRP paid in installment & will depend on an unknown variable. This will impact on their liabilities to bank loan & other expenses as they are to be paid as usual. The farmers required more money in the beginning of the season as it will decide the next crop cycle. 

The FRP is fixed at Rs 2900 per tonne at a base recovery of 10% for the sugar season 2021-2022. The Maharashtra government take a great step for the farmers welfare but state government need to keep in mind that it will cause trouble to the farmer at certain scale. The government should reconsider the policy and frame it accordingly in order to avoid such losses like farmer mentioned in their commentary. 

The farmers are already aggrieved by the farmers bill that was introduced by the parliament. The FRP is another issue that haunt the farmers especially sugar cane farmer. Sugar cane is a cash crop that is grown hot & humid climate around 75 to 100 cm rainfall. The top sugarcane producing states in India are Uttar Pradesh (UP), Maharashtra, Karnataka, Tamil Nadu & Bihar. The sugar cane farming required manual labour from sowing to harvesting that required hard labour and human resources with less use of machines in the land. India is the 2nd largest producer of Sugar Cane after Brazil. 


Comments

Popular posts from this blog

Concept of constitutionalism

  Concept of constitutionalism Who Started Constitutionalism? John Locke - The English Bill of Rights is a foundational constitutional document that helped inspire the American Bill of Rights. Political theorist  John Locke  played a huge role in cementing the philosophy of constitutionalism.  Constitution is a written law which describes the structure of Government, the rules according to which the Govt. must work and the boundaries within which the Govt. must work. Constitutionalism   can be defined as the doctrine that governs the legitimacy of government action, and it implies something far more important than the idea of legality that requires official conduct to be in accordance with pre-fixed legal rules. Constitution constitution is the document that contains the basic and fundamental law of the nation, setting out the organization of the government and the principles of the society. Basic norm (or law) of the state; System of integration and organi...

business tips

1. Have a clear vision for your business and strive to achieve it. 2. Hire great people and give them ownership in the company. 3. Provide excellent customer service. 4. Establish yourself as an expert in your field. 5. Develop relationships with key suppliers, customers, and partners. 6. Keep track of your finances and invest in marketing and innovation. 7. Utilize digital platforms to reach a larger audience. 8. Take calculated risks and back yourself. 9. Continuously strive to improve your products and services. 10. Make customer satisfaction your priority.

Effects of Non-Registration

 Effects of Non-Registration The Companies Act, 2013 evidently highlights that the main essential for any organization to turn into a company is to get itself registered. A company cannot come into existence until it gets registered. But no such obligation has been imposed for firms by the Indian Partnership Act, 1932. If a firm is not registered it does not cease to be called as a firm, it still exists in the eyes law. Certainly, such a big advantage is not absolute but is subjected to a lot of limitations which we will study further. Non-registration of a firm simply means that the business skips the formalities of incorporation and ceases to exist in the eyes of the law. section 58 of the Indian Partnership Act, 1932 deals with the procedure of incorporation. Likewise, the meaning of non-registration is the exact opposite of registration, meaning when a firm does not go through the procedure of incorporation or start carrying on activities without getting registered. Effects of ...