Centre hikes sugarcane FRP `10 to `365 per quintal

Cabinet decision boosts cane growers’ income, ensures steady supply, supports mills, labour, and ethanol output growth

The Union Cabinet on Tuesday approved a ₹10 increase in the Fair and Remunerative Price (FRP) of sugarcane to ₹365 per quintal for the 2026–27 sugar season, beginning October. The decision, taken under the chairmanship of Prime Minister Narendra Modi, aims to boost farmer incomes and sustain the sugar industry.

 Announcing the move, Information and Broadcasting Minister Ashwini Vaishnaw said the FRP is fixed at a basic recovery rate of 10.25%. For every 0.1 percentage point increase in recovery above this level, the FRP will rise by ₹3.56 per quintal, providing incentives for better efficiency. 

 The revised FRP is pegged at 200.5% of the all-India weighted cost of production, ensuring remunerative returns to farmers.  According to the government, the hike is expected to translate into payments exceeding ₹1 lakh crore to sugarcane growers. The FRP is determined based on recommendations of the Commission for Agricultural Costs and Prices, taking into account production costs, demand-supply dynamics and broader economic conditions. Sugar mills are legally required to procure cane from farmers at the FRP or higher. The increase is expected to benefit nearly 1 crore sugarcane farmers and support livelihoods of farm labourers involved in cultivation. It will also help sustain operations of sugar mills, ensuring timely payments and stable domestic sugar supplies.

Additionally, the move supports around 5 lakh workers employed in sugar factories and allied sectors. It is also expected to aid ethanol production from surplus sugarcane, aligning with the government’s push towards blending and energy security.  

Informist