- Why in news
- On 14 October 2026 the Government of India set up a committee under Prof. Ramesh Chand to examine sugarcane farmers' issues and the sugar sector, after farmers from Karnataka and Maharashtra met two Union Ministers.
- What it is
- Sugarcane pricing in India has two layers: a central Fair and Remunerative Price (FRP) that mills must pay, and a separate ex-mill minimum selling price (MSP) of sugar. This committee is an expert panel to look at farmers' complaints on returns, recovery, weighment and harvesting deductions, and at the mills' financial viability.
- Chair
- Prof. Ramesh Chand, an agricultural economist and former NITI Aayog Member, chairs the committee.
- Sugar MSP
- The committee will study revising the ex-mill Minimum Selling Price of sugar, in light of production costs, market realisations and mill viability.
- Recovery and weighment
- It will review how sugar recovery is tested and reported, and how cane is weighed at mills, including calibration and inspection.
- Mechanised harvesting
- It will assess deductions from the weight of machine-harvested cane and the actual losses, if any.
- Members
- Members are the Agriculture Commissioner, the Joint Secretary (Sugar) and the Joint Secretary (Legal Metrology).
- FRP basis
- The FRP of sugarcane is fixed by the Centre under the Sugarcane (Control) Order, 1966, on the advice of the Commission for Agricultural Costs and Prices (CACP).
Don’t confuse with FRP vs ex-mill MSP of sugar: FRP is the minimum price mills must pay farmers for cane. The ex-mill MSP is the minimum price at which mills sell sugar. The committee looks at both farmer returns and the sugar MSP.
Don’t confuse with FRP vs State Advised Price (SAP): FRP is set by the Centre. Some states, such as Uttar Pradesh, set a higher SAP for cane.
Economy terms and data: 42 Prelims questions since 2013, rising in recent years; they test what a term or instrument means. In Mains, 12 news-triggered questions.
Why it matters
- Cane price disputes affect the incomes of millions of farmers and the viability of mills.
- Transparent recovery testing and weighment can build farmer trust and reduce disputes over payments.
Problems
- A higher cane price squeezes mill margins unless the sugar MSP also rises, which raises prices for consumers.
- Differences in recovery rates and state pricing make one uniform rule hard to apply.
Way forward
- Link cane payment to verified, transparent recovery and weighment, using calibrated and audited systems.
- Balance cane price, sugar MSP and mill viability, with consultation of states, farmers and mills.
Put in your answer
Committee mandate: The panel will consult farmers' representatives, mill associations, state governments and experts before reporting.
- 2018Mains GS3 · Q3Define MSP; how it rescues farmers from low-income trap.
- 2013Mains GS1 · Q23Agree with new sugar mill growth in southern states? Justify.
- 2015Prelims Q13Which body approves the Fair and Remunerative Price of sugarcane?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Committee on cane price, ex-mill minimum selling price and recovery; related to FRP on file but no outcome yet to test.
Source: PIB, Ministry of Consumer Affairs, Food & Public Distribution, 14 Oct, 18:13 IST · Release 2323450
Worth revising until Prelims 2028: most news questions come within two years of the event.