Govt cuts fair price for cane : As per economic times -
NEW DELHI: The government has watered down the method of calculating the fair and remunerative price (FRP) for sugarcane, saving the sugar industry
a substantial amount by way of payment to farmers.

The FRP for sugarcane was last week pegged at only 50% over the cost of production against 56-60% proposed in a cabinet note circulated early October. This is likely to save the Rs 60,000 crore industry nearly Rs 2,000 crore in payment to farmers for sugarcane for the 2009-10 sugar year (October-September).
Better still for sugar millers is this: even though the FRP has been pegged at cost of production for cane plus 50% for 2009-10, the percentage itself could vary each year, based on where sugarcane output was in glut or shortfall (sugar prices would go up) accordingly, higher/lower input costs etc. A fixed percentage level could mean that millers would have to pay high sugarcane support even in cane glut years, defying all market logic.