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NEW DELHI/MUMBAI, May 27 (Reuters) - India has kept the price that sugar mills must pay to cane growers, for the season starting October 2016, unchanged at 230 rupees per 100 kg, trade and government sources said, as the world's biggest consumer tries to arrest the rising prices of the sweetener.
The government has accepted recommendation of the Commission for Agricultural Costs and Prices to keep the cane price steady for the next season, said a government official, who declined to be named.
Although the federal government fixes the cane price every year, some state governments such as Uttar Pradesh invariably raise the rate to woo farmers, which is a large voting bloc.
India is likely to become a net importer of the sweetener in the 2016/17 season, starting Oct. 1, as back-to-back drought years dried irrigation channels and ravaged cane fields. (Reporting by Mayank Bhardwaj and Rajendra Jadhav; Editing by Sherry Jacob-Phillips)