Sugarcane SMP fixed at Rs 81.18 per quintal

New Delhi, Dec 21 (UNI) The government today announced statutory minimum price (SMP) of sugarcane at Rs 81.18 per quintal for the year 2007-08 for a basic recovery of nine per cent, subject to a premium of Rs 0.90 for every 0.1 percentage increase in the recovery above that level.

''This increase amounts to Rs 5 per quintal with reference to 9 per cent recovery level,'' Finance Minister P Chidambaram said after a meeting of the Cabinet Committee of Economic Affairs (CCEA), presided over by Prime Minister Manmohan Singh.

Last year's (2006-07) SMP for sugarcane was Rs 80.25 at the basic recovery rate of 9 per cent, subject to Rs 0.75 premium for every 0.1 percentage point increase in recovery.

The sugarcane SMP is fixed by the Commission for Agricultural Costs and Prices (CACP) every year and some states give additional price for the crop in the shape of State Advisory Prices (SAP).

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