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Karnataka sugarcane growers suspend agitation; CM seeks Centre's help

22 October 2026 · ⏱ 2 मिनट · GS-III: Agriculture pricing; Karnataka economy

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खबर में क्यों?

Who really fixes what cane farmers get paid? The FRP versus State Advised Price split GS-III tests

The CM wants the Centre to revise the sugar MSP and restore the FRP base recovery to 9.5%.

Why it matters: asked in UPSC 2015; factual, Prelims-type; Karnataka-specific

Karnataka sugarcane growers suspend agitation; CM seeks Centre's help
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What you need to know

2 मिनट

Karnataka sugarcane growers have suspended their agitation after Chief Minister D.K.

Shivakumar met them.

The Chief Minister has written to the Prime Minister seeking early revision of the minimum selling price of sugar and restoration of the base recovery rate for the Fair and Remunerative Price (FRP) to 9.5 per cent.

The FRP is fixed by the Centre, while states may announce a State Advised Price on top of it.

स्रोत: Topper IAS editorial (PIB / The Hindu / Indian Express)

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मुख्य तथ्य

Remember these

  • The Fair and Remunerative Price (FRP) is the minimum price mills must pay sugarcane growers; it is fixed by the Centre.
  • The Centre announces the FRP on the recommendation of the Commission for Agricultural Costs and Prices (CACP).
  • States may announce a State Advised Price (SAP) on top of the FRP.
  • FRP is linked to a base sugar recovery rate; Karnataka's CM has sought restoration of this base to 9.5 per cent.
  • The CM has also asked the Centre to revise the minimum selling price (MSP) of sugar.
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प्रीलिम्स · मेन्स

How the exam will ask it

प्रीलिम्स

  • The Fair and Remunerative Price of sugarcane is fixed by the Central Government on the recommendation of the CACP.
  • States can announce a State Advised Price above the FRP, which is not binding in the same statutory way as the FRP.
  • The FRP is linked to a base sugar recovery rate, with premiums or deductions for recovery above or below it.
  • The minimum selling price of sugar is a Centre-set floor for mills' sugar sales and differs from the FRP paid to farmers.

मेन्स

GS-III (Agriculture pricing, food processing) and Karnataka economy. Sugarcane growers' payment is set by the Centre's FRP, while mills' revenue depends on sugar prices, so a stagnant sugar MSP squeezes mills' ability to pay and triggers farmer protests. The way forward is to align FRP and sugar MSP through a transparent formula, such as linking the MSP to the cost of cane, and to diversify mills into ethanol and cogeneration.

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PYQ connection

A question UPSC has already asked on this

🔁 UPSC PYQ CONNECTION · UPSC CSE 2015

The Fair and Remunerative Price (FRP) of sugarcane is approved by the

  1. Cabinet Committee on Economic Affairs
  2. Commission for Agricultural Costs and Prices
  3. Directorate of Marketing and Inspection, Ministry of Agriculture
  4. Agricultural Produce Market Committee
उत्तर देखें

उत्तर: A

Why this matters: today's issue is directly connected to a concept UPSC has already tested. Read the story with this question in mind.

Practise this PYQ →
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Quick recall

Answer before you reveal

The Fair and Remunerative Price (FRP) of sugarcane is announced by the:

  1. State Government of the sugar-producing state
  2. Central Government on the recommendation of the CACP
  3. Sugar factories' association of each state
  4. NABARD on the basis of market prices
उत्तर देखें

उत्तर: B — The correct answer is Central Government on the recommendation of the CACP. The FRP is fixed by the Central Government on the recommendation of the Commission for Agricultural Costs and Prices, while states may add a State Advised Price.

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