The government Thursday set a "fair and remunerative" price of Rs.220 per quintal payable by mills to sugarcane farmers for the 2014-15 marketing season.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh, approved the decision at a meeting here.
According to an official statement released after the cabinet meeting, fair and remunerative price of sugarcane payable by sugar mills for 2014-15 sugar season will be Rs.220 per quintal linked to a basic recovery rate of 9.5 percent.
The sugar marketing season starts from October.
"This shall be subject to a premium of Rs. 2.32 per quintal for every 0.1 percentage point increase in recovery above that level," the statement said.