- Cabinet Committee on Economic Affairs approves ₹365/qtl FRP
- 5 crore farmers and 5 lakh workers to benefit
- Premium linked to sugar recovery rate introduced
- No deduction for recovery below 9.5%
GG News Bureau
New Delhi, 5th May: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a Fair and Remunerative Price (FRP) of ₹365 per quintal for sugarcane for the 2026-27 sugar season.
The FRP has been fixed for a basic recovery rate of 10.25%, with a premium of ₹3.56 per quintal for every 0.1% increase in recovery above this level. Similarly, the price will be reduced by ₹3.56 per quintal for every 0.1% decrease in recovery.
To safeguard farmers’ interests, the government has ensured that there will be no deduction for mills where recovery falls below 9.5%. In such cases, farmers will receive ₹338.3 per quintal.
The decision is expected to benefit around 5 crore sugarcane farmers and nearly 5 lakh workers employed in sugar mills and allied sectors.
According to official data, the cost of production (A2+FL) for sugarcane is estimated at ₹182 per quintal, making the approved FRP over 100% higher than production cost. The new FRP is also 2.81% higher than the current 2025-26 season.
The revised price will be applicable for sugar mills purchasing cane from farmers starting October 1, 2026, for the 2026-27 sugar season.
The FRP has been determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP), along with consultations with state governments and stakeholders.
Government data shows strong payment performance in recent seasons. In 2024-25, about 99.5% of cane dues were cleared, while in the ongoing 2025-26 season, around 88.6% of dues have been paid so far.
The sugar sector remains a crucial agro-based industry, supporting millions of farmers, labourers and workers across the country.
