India is planning an increase of 8% for the floor price that mills must pay for sugar cane in the 2024/25 season starting from Oct. 1, a government source told Reuters on Wednesday, as the world's second largest sugar producer tries to boost production after drought curtailed output.

New Delhi is considering fixing the Fair and Remunerative Price (FRP) of sugar cane at 340 rupees per 100 kg for next season, up from this year's 315 rupees for a basic recovery rate of 10.25%, the source said, who declined to be named since the proposal is under consideration.

(Reporting by Sarita Chaganti Singh; writing by Rajendra Jadhav; editing by Jason Neely)