New Delhi, April 6: The government is believed to have approved the sugarcane price to be paid by millers unchanged at Rs 230 per quintal for the next season starting October 2016.

A decision in this regard was taken at the meeting of the Cabinet Committee of Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, here today.

But the decision was not announced due to model code of conduct in view of elections in some states, sources said.

The food ministry's proposal on the fair and remunerative price (FRP) of sugarcane was discussed at length and there was in-principle agreement on maintaining the rate at Rs 230 per quintal as recommended by the CACP for 2016-17 season (October-September), the sources added.

The Commission for Agricultural Costs and Prices (CACP), a statutory body that advises the government on the pricing policy for major farm produce, has recommended no hike in the cane FRP for the next season.

FRP is the minimum price that sugarcane farmers are legally guaranteed. However, state governments are free to fix their own state-advised price (SAP) and millers can offer any price above the FRP.

FRP is fixed after taking into consideration the margin for sugarcane farmers, based on the cost of production, including the transportation costs.

It is linked to a basic sugar recovery rate of 9.5 per cent, subject to a premium of Rs 1.46 for every 0.1 percentage point increase in recovery above 9.5 per cent. The recovery rate is the quantity of sugar produced from the crushed cane.

For the ongoing 2015-16 season (October-September), the government had raised the FRP of cane by Rs 10 to Rs 230 per quintal.