Sugarcane Fair and Remuneration (FRP)
Price Raised to ₹365 per qtl for 2026–27 Season
Ø Decision will benefit 5 crore sugarcane farmers
as well as 5 lakh workers employed in the sugar mills and related ancillary activities
·
The
Cabinet Committee on Economic Affairs led by Narendra Modi approved FRP of ₹365 per quintal
for Sugar Season 2026–27.
·
Applicable
at a basic recovery rate
of 10.25% (from October 2026 to September 2027).
·
Incentive
structure:
o +₹3.56/qtl
for every 0.1% increase
in recovery
o −₹3.56/qtl
for every 0.1% decrease
·
Farmer
protection measure:
o No deduction below 9.5% recovery
o Minimum assured price: ₹338.3/qtl
·
Cost
vs price:
o Production cost (A2+FL): ₹182/qtl
o FRP is 100.5% higher than cost
·
Increment
over last season:
o FRP is 2.81% higher than 2025–26
·
Coverage
& impact:
o Benefits around 5 crore sugarcane farmers
o Supports 5 lakh sugar mill workers + ancillary jobs
·
Basis
of decision:
o Based on recommendations of Commission for
Agricultural Costs and Prices (CACP)
·
Payment
performance:
o 2024–25: 99.5% dues cleared
o 2025–26: 88.6% dues cleared (till April 2026)
·
Aims
to ensure fair returns to
farmers while maintaining stability in the sugar sector.
Keeping
in view interest of sugarcane farmers (Ganna Kisan), the Cabinet Committee on Economic
Affairs chaired by the Prime Minister Narendra Modi has approved Fair and Remunerative
Price (FRP) of sugarcane for Sugar Season 2026-27 (October - September) at Rs.365/qtl for a basic recovery rate of 10.25%, providing a premium
of Rs.3.56/qtl for each 0.1% increase in recovery over
and above 10.25%, & reduction in FRP by Rs.3.56/qtl
for each 0.1% decrease in recovery.
The
Government with a view to protect interest of sugarcane farmers has also decided
that there shall not be any deduction in case of sugar mills where recovery is below
9.5%. Such farmers will get Rs.338.3/qtl for sugarcane
in ensuing sugar season 2026-27.
The
cost of production (A2 +FL) of sugarcane for the Sugar Season 2026-27 is Rs.182/qtl. This FRP of Rs.365/qtl at a recovery
rate of 10.25% is higher by 100.5% over production cost. The FRP for Sugar Season
2026-27 is 2.81% higher than current Sugar Season 2025-26.
The
FRP approved shall be applicable for purchase of sugarcane from the farmers in the
Sugar Season 2026-27 (starting w.e.f. 1st October, 2026) by sugar mills. The sugar
sector is an important agro-based sector that impacts
the livelihood of about 5 crore sugarcane farmers and their dependents and around
5 lakh workers directly employed in sugar mills, apart from those employed in various
ancillary activities including farm labour and transportation.
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Background:
The
FRP has been determined on the basis of recommendations of Commission for Agricultural
Costs and Prices (CACP) and after consultation with State Governments and other
stake-holders.
In
the previous Sugar Season 2024-25, out of cane dues payable of Rs.1,02,687 crore
about Rs.1,02,209 crore cane dues have been paid to farmers, as on 20.04.2026; thus,
about 99.5% cane dues have been cleared. In the current Sugar Season 2025-26, out
of cane dues payable of Rs.1,12,740 crore about Rs.99,961 crore cane dues have been
paid to farmers, as on 20.04.2026; thus, about 88.6% cane dues have been cleared.