Keeping FRP of sugarcane at same level will ensure viability of mills, says Abinash Verma of ISMA

The Cabinet's decision to retain the fair and remunerative price (FRP) of sugarcane at Rs 275  per quintal will ensure viability of sugar mills, said Abinash Verma, director-general of Indian Sugar Mills Association (ISMA).

The government has kept the minimum price sugar mills pay to sugarcane growers for the next marketing year which will start from October.

"Let us accept and understand that politically reducing the price of any crop that the government of India keeps - I don’t think that it is practical or is possible... I have never seen ever in the history that any price of any crop is reduced by the government... to keep it at the same level is a brilliant decision and excellent decision because that will ensure the viability of the sugar mills," he said in an interview with CNBC-TV18.