commodities; (c) availability of sugar to consumers at a fair price; (d) price at which sugar
      produced from sugarcane is sold by sugar producers; (e) recovery of sugar from sugarcane; (f)
      the realization made from sale of by-products viz., molasses, bagasse and press mud or their
      imputed value; and (g) reasonable margins for the growers of sugarcane on account of risk and
           Under the FRP system, the farmers are not required to wait till the end of the season or for
      any announcement of the profits by sugar mills or the government. The new system also assures
      margins on account of profit and risk to farmers, irrespective of the fact whether sugar mills
      generate profit or not and is not dependent on the performance of any individual sugar mill. In
      order to ensure that higher sugar recoveries are adequately rewarded and considering variations
      amongst sugar mills, the FRP is linked to a basic recovery rate of sugar, with a premium payable
      to farmers for higher recoveries of sugar from sugarcane. Accordingly, FRP for 2018-19 sugar
      season has been fixed at ₹ 275 per qtl. linked to a basic recovery of 10 per cent subject to a
      premium of ₹ 2.75 per qtl. for every 0.1 percentage point increase above that level.
      De-regulation of Sugar Sector
           2013-14 was a watershed for the sugar industry. The central government considered the
      recommendations of the committee headed by Dr. C. Rangarajan on deregulation of sugar sector
      and decided to discontinue the system of levy obligations on mills for sugar produced after
      September, 2012 and abolished the regulated release mechanism on open market sale. The
      deregulation of the sugar sector was undertaken to improve the financial health of sugar mills,
      enhance cash flows, reduce inventory costs and also result in timely payments of cane price to
      sugarcane farmers. The recommendations of the committee relating to cane area reservation,
      minimum distance criteria and adoption of the cane price formula have been left to state
      governments for adoption and implementation, as considered appropriate by them.
      Review of Distribution of Sugar to Antyodaya Anna Yojana Families
           Sugar was distributed through the Targeted Public Distribution System (TPDS) by the
      states/UTs at subsidized prices for which the central government was reimbursing ₹ 18.50 per kg
      of sugar distributed by the participating state governments /UT administrations. The scheme was
      covering all BPL population of the country as per 2001 census and all the population of the
      North Eastern states / special category/ hilly states and island territories. The National Food
      Security Act, 2013 (NFSA) is now being universally implemented by 36 states/UTs. Under the
      NFSA, there is no identified category of BPL; however, the Antyodaya Anna Yojana (AAY)
      beneficiaries are clearly identified. The Sugar Subsidy Scheme has been reviewed and it has been
      decided that it is imperative to give access to consumption of sugar as a source of energy in diet,
      for the poorest of the poor section of the society i.e., AAY families. Accordingly, the
      government has decided that the existing system of sugar distribution through PDS may be
      continued as per the following:- (i) the existing scheme of supply of subsidized sugar through
      PDS may be continued for restricted coverage of AAY families only. They will be provided 1 kg
      of sugar per family per month; (ii) the current level of subsidy at ₹ 18.50 per kg provided by the
      central government to states/UTs may be continued for the AAY population. The revised scheme
      was implemented in 2017. Twelve states participated during 2017-18 and ₹ 300 crore was
      released as subsidy under it.
      Ethanol Blending Petrol Programme