India hikes fair price for sugarcane to Rs139.12 per quintal

The government has approved a uniform Rs139.12 per quintal as the `fair and remunerative price' (FRP) for sugarcane across all states.
 
The FRP, approved by the cabinet committee on economic affairs (CCEA) today, is for sugarcanes having a 9.5 per cent recovery rate and is subject to a premium of Rs1.46 for every 0.1 per cent increase in the recovery above 9.5 per cent.

The FRP of sugarcane for 2009-10 sugar season was Rs129.84 per quintal linked to 9.5 per cent recovery rate and subject to a premium of Rs1.37 per quintal for every 0.1 per cent increase in recovery above 9.5 per cent.

MSP for jute: The CCEA also approved a minimum support price (MSP) for TD-5 grade of jute ex-Assam at Rs1,575 per quintal for 2010-11 season. This represents an increase of Rs200 per quintal over the MSP announced by the government last season.

The increase in the MSP of raw jute is expected to encourage the farmers to step up investment in Jute cultivation and thereby production and productivity of jute in the country.

The Jute Corporation of India (JCI) would continue to act as nodal agency to undertake price support operation at the MSP in the jute growing states.