The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, approved the Fair and Remunerative Price (FRP) for sugarcane at Rs 355 per quintal for the 2025-26 season.
This rate, for a basic recovery rate of 10.25%, represents a 105.2% increase over the production cost of Rs 173 per quintal.
The announcement comes with provisions to ensure further fairness: a premium of Rs 3.46 per quintal will be granted for each 0.1% increase above the basic recovery rate, with no deductions if the recovery rate falls below 9.5%. Farmers with lower recovery rates will still receive a minimum of Rs 329.05 per quintal.
This decision will positively impact approximately 5 crore sugarcane farmers, along with 5 lakh workers employed in sugar mills and related activities. The sugar industry, a vital agro-based sector, stands as a cornerstone for rural livelihoods and economic activity.
The Cabinet’s move aligns with the recommendations of the Commission for Agricultural Costs and Prices (CACP) and highlights the government’s commitment to the timely payment of dues to farmers. For the previous 2023-24 season, 99.92% of cane dues have already been cleared.
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