The Government today 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.
"Farmers will get a premium of Rs 1.13 for every 0.1 percentage additional recovery over 9.5 per cent," Home Minister P Chadamabaram 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.