The government on Thursday increased the statutory minimum price (SMP) for sugarcane by over 32 per cent to Rs 107.76 per quintal for the 2009-10 sugar season. SMP is the minimum price that sugar mills have to pay for purchasing sugarcane from farmers.
The government on Thursday increased the statutory minimum price (SMP) for sugarcane by over 32 per cent to Rs 107.76 per quintal for the 2009-10 sugar season. SMP is the minimum price that sugar mills have to pay for purchasing sugarcane from farmers.
Sugar season runs from October to September. In 2008-09 the SMP was Rs 81.18 per quintal. Above this guaranteed price, farmers will also get a premium for additional recovery above 9.5 per cent.
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"Farmers will get a premium of Rs 1.13 for every 0.1 percentage additional recovery over 9.5 per cent," Home Minister P Chidambaram told reporters after the Cabinet Committee on Economic Affairs meet.
The country's sugar production is estimated at 15 million tonnes in the 2008-09 season ending September this year.
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