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Fair and Remunerative Price (FRP)' came in 2009-10, decided on the basis of the recommendations of CACP. Which of the following factors are considered while deciding FRP?
1) cost of production of sugarcane
2) return to the growers from alternative crops and the general trend of prices of agricultural commodities
3) recovery of sugar from sugarcane
4) the realisation made from sale of by-products viz. molasses, bagasse and press mud or their imputed value
5) availability of sugar to consumers at a fair price
1,2 and 5 only
1,2,4 and 5 only
3 only
All of the above
Sugarcane Pricing Policy 'Fair and Remunerative Price (FRP)' came in 2009-10, decided on the basis of the recommendations of CACP, having regard to the factors:- a) cost of production of sugarcane; b) return to the growers from alternative crops and the general trend of prices of agricultural 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 realisation 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 profits. The new system also assures the margins on account of profit and risk to farmers. FRP is linked to a basic recovery rate of sugar, with a premium payable to farmers for higher recoveries of sugar from sugarcane.
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