In a significant move to support sugarcane farmers, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi on April 30, 2025, has approved the Fair and Remunerative Price (FRP) for the upcoming sugar season 2025-26.
The FRP for sugarcane has been set at Rs 355 per quintal for a basic recovery rate of 10.25%. Additionally, a premium of Rs 3.46 per quintal will be awarded for every 0.1% increase in recovery above the base rate.
On the other hand, the FRP will be reduced by Rs 3.46 per quintal for every 0.1% decrease in recovery. However, to protect farmers' interests, the government has decided that there will be no deduction for sugar mills where recovery is below 9.5%. In these cases, farmers will still receive Rs 329.05 per quintal for their sugarcane.
This decision is expected to directly impact around 5 crore sugarcane farmers and their families, as well as the 5 lakh workers employed in sugar mills and related activities. It is seen as a positive step toward strengthening the sugar industry.
The FRP has been determined following consultations with the Commission for Agricultural Costs and Prices (CACP), state governments, and other stakeholders.
The estimated cost of production for sugarcane in the 2025-26 season is Rs 173 per quintal, making the FRP a substantial 105.2% higher than the production cost. This increase in FRP, which is 4.41% higher than the FRP for the current season, reflects the government's commitment to ensuring fair remuneration for farmers.
The sugarcane sector plays a vital role in the economy, providing livelihoods for millions of farmers and creating significant employment opportunities in sugar mills and related industries.
As of April 28, 2025, approximately 99.92% of cane dues for the 2023-24 season, amounting to Rs 1,11,782 crore, have been cleared. For the current sugar season, cane dues of Rs 97,270 crore have been partially paid, with Rs 85,094 crore already settled, representing 87% of the total dues.
