"The Cabinet Committee on Economic Affairs (CCEA) has approved the Fair and Remunerative Price (FRP) of sugarcane payable by sugar mills for 2012-13 to be fixed at Rs 170 per quintal," an official statement said.
The FRP, the minimum price to be paid by mills to cane farmers, for 2011-12 marketing year ending September stands at Rs 145 per quintal.
Some states like Uttar Pradesh does not follow central FRP and announces higher price.
In another major decision, the Cabinet has decided farmers can get financial relief in case of crop damage due to cold wave/frost under the State Disaster Response Fund (SDRF) and National Disaster Response Fund (NDRF).
At present, cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst and pest attack are treated as natural calamities and are eligible for relief under the SDRF and NDRF.
In order to discourage imports of refined palm oil and protect domestic edible oil processors, the CCEA decided to defreeze the tariff value on imported RBD palmolein from USD 484 per tonne and align it with the current global prices.
Although the import duty on refined oil is 7.5 per cent, the government has kept unchanged the tariff value, the base price on which custom duty is determined to check under invoicing by importers, since July 2006 due to high inflation.
Lower tariff value coupled with Indonesia's decision to reduce export duty have led to sharp rise in India's imports of refined palm oil.
India imports more than half of its domestic requirement. While palm oil is being imported from Indonesia and Malaysia, soyabean oil comes from Argentina and Brazil.