• UGI USER
  • Jul 05, 2024
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“ISMA URGES GOVERNMENT TO LIFT EXPORT CURBS AMID RISING SUGAR STOCKS”

Why in the news?

  • ISMA calls for lifting export curbs due to high sugar stocks, which could lead to additional costs for millers.
  • Government’s FRP hike for sugarcane increases production costs, emphasising the need for surplus sugar export to maintain financial liquidity.
source: quora

About Indian Sugar Mills Association (ISMA):

  • Premier sugar organisation in India.
  • Acts as an interface between the Government and the sugar industry (both private and public sugar mills).
  • Established in 1932, making it the oldest industrial association in the country.
  • Recognized by both the Central Government and State Governments as the apex sugar body.
  • Ensures the interests of sugar mills are safeguarded through conducive and growth-oriented government policies.
About Fair and Remunerative Price (FRP):

  • FRP is the price declared by the government, which mills are legally obligated to pay to farmers for the cane procured from them.
  • Authority: The FRP is fixed by the Union government, specifically the Cabinet Committee on Economic Affairs (CCEA).
  • Basis: Recommendations from the Commission for Agricultural Costs and Prices (CACP).
  • Legislation: Payment of FRP is governed by the Sugarcane Control Order, 1966.
  • Payment Terms: Mills must pay the FRP within 14 days of the cane’s delivery date.
  • Instalments: Mills can sign agreements with farmers to pay the FRP in instalments.
  • Interest on Delays: Up to 15% per annum.

Associated Article:

https://universalinstitutions.com/centers-landmark-move-amid-famers-protest-eight-percent-hike-in-sugarcane-frp-quintal/