Government hikes sugarcane fair price to Rs 210

The Cabinet Committee on Economic Affairs (CCEA) on Thursday decided to to remove cap on export of branded oil, permitting revival package for Scooters India and hiking sugarcane fair and remunerative price (FRP).

The government lifted the ban on export of branded edible oil in small packets and fixed a minimum export price (MEP) of $1,500 per tonne. “It (government) has been decided to remove the quantitative limit and to allow export of only those premium edible oils, in consumer packs of up to 5 kg, which can fetch a MEP of $1,500 per tonne,” an official statement said.

The CCEA also increased the fair and remunerative price (FRP), the minimum price that sugarcane farmers are legally guaranteed in the 2012-13 marketing year (October-September).  “The CCEA has approved sugarcane FRP for 2013-14 at Rs 210 per quintal. This is an increase of `40 per quintal from the last year,” Union Food Minister K V Thomas said after the meeting.

Besides, the Cabinet approved a Rs 200 crore revival package for Scooters India Ltd (SIL). The decision for revival comes after the government decided not to sell its entire stake in the sick company.

The Government also approved amendments in the Regional Rural Banks (RRBs) Act, 1976 that seeks to enhance their capital base and to fix the maximum term of government appointed non-official directors at two years.

RRBs are jointly owned by the Centre and States and sponsor banks, with the issued capital shared in the proportion of 50 per cent, 15 per cent and 35 per cent, respectively.