“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.

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