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The sugar mills will now have to pay more to the cane growers. This is because the government on Thursday increased the statutory minimum price for sugarcane by over 32 percent to Rs.107.76 per quintal for the season of 2009-10. The price of sugarcane had been Rs.81.18 per quintal in the previous October-September season.
Above this guaranteed price, farmers will also get a premium for additional recovery above 9.5 percent.
"Farmers will get a premium of Rs.1.13 for every 0.1 % additional recoveries over 9.5 percent”. This information was given to the media by the Home Minister P. Chidambaram after a meeting of the Cabinet Committee on Economic Affairs.
Last year, the premium was fixed at Rs.0.90 for every 0.1 percentage increase in the recovery above 9 percent.
For the current season ending September, national sugar production has been pegged at 15 million tonnes.
