Cabinet Committee on Economic Affairs(CCEA) today approved the Statutory Minimum Price (SMP) of sugarcane at Rs.79.50 per quintal linked to a basic recovery of 9 per cent subject to a premium of Rs.0.88 for every 0.1 percentage point increase in the recovery for sugar season 2005-06.
The price of Rs. 79.50 per quintal has been recommended by Commission for Agricultural Costs and Prices (CACP).
The earlier SMPs of sugarcane recommended by CACP and that fixed by the Government during the last five years is given below:
| Sugar Season | SMP recommended by the CACP | SMP accepted by the Govt. | (+) Increase (-) Decrease over previous year |
| 2000-2001 | 59.50 | 59.50 | (+) 3.40 |
| 2001-2002 | 62.05 | 62.05 | (+) 2.55 |
| 2002-2003 | (i) 64.50 (ii) 69.50 | (i) 64.50 (ii) 69.50 | (+) 2.45 (+) 5.00 |
| 2003-2004 | 73.00 | 73.00 | (+) 3.50 |
| 2004-2005 | 74.50 | 74.50 | (+) 1.50 |
This will ensure a minimum price to sugarcane growers.
YSR/DS/LV