Govt hikes sugarcane FRP by 23.5% to Rs 210 per quintal for 2013-14

NEW DELHI: The Centre has raised the sugarcane price the mills have to pay to farmers by 23.5% to Rs 210 per quintal for the year starting October 2013. "We have accepted the recommendations of the Commission for Agricultural Costs and Prices (CACP). Now farmers will be able to cover the rise in cultivation cost," said Union Food Minister KV Thomas.

With this increase, sugarcane farmers will get a fair and remunerative price (FRP) of Rs 210 a quintal - up from Rs 170 in the 2012-13 marketing year.

The Cabinet Committee on Economic Affairs (CCEA) also agreed to allow partially export of edible oils from domestic tariff area to food makers in special economic zones . The government has scrapped the ceiling on exporting oil up to 20,000 tonne and fixed a minimum export price of $1,500 per tonne in the branded consumer packs of up to 5 kg.

"An inter-ministerial committee will be set up to calibrate the MEP from time to time," said a minister who was present in the meeting. The CCEA permitted export of coconut oil, permitted only through Kochi port, from all EDI ports and through Land Customs Stations.