Fair and Remunerative Price of Rs. 355/qtl approved for Sugarcane Farmers  

Decision will benefit 5 crore sugarcane farmers  and their dependents, as well as 5 lakh workers employed in the sugar mills and related ancillary activities

Keeping in view interest of sugarcane farmers (GannaKisan), the Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2025-26 (October - September) at Rs.355/qtl for a basic recovery rate of 10.25%, providing a premium of Rs.3.46/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by Rs.3.46/qtl for every 0.1% decrease in recovery.

However, 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.329.05/qtl for sugarcane in ensuing sugar season 2025-26.

The cost of production (A2 +FL) of sugarcane for the sugar season 2025-26 is Rs.173/qtl. This FRP of Rs.355/qtl at a recovery rate of 10.25% is higher by 105.2% over production cost. The FRP for sugar season 2025-26 is 4.41% higher than current sugar season 2024-25.

The FRP approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2025-26 (starting w.e.f. 1st October, 2025) 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.

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 2023-24, out of cane dues payable of ₹ 1,11,782 crores about Rs.1,11,703 crores cane dues have been paid to farmers, as on 28.04.2025; thus, 99.92% cane dues have been cleared. In the current sugar season 2024-25, out of cane dues payable of Rs.97,270 crore about Rs.85,094 crores cane dues have been paid to farmers, as on 28.04.2025; thus, 87% cane dues have been cleared.

Fair and Remunerative Price approved for upcoming sugar season with recovery linked premium and penalty plus low recovery protection. Fair and Remunerative Price fixed at Rs.355 per quintal for sugar season 2025-26 for a basic recovery of 10.25%, with a recovery linked adjustment of Rs.3.46 per quintal for each 0.1% change in recovery; applicability from 1 October 2025. A protective rule prevents deduction where mill recovery is below 9.5%, ensuring a protected payable rate to farmers. The FRP exceeds the stated cost of production (A2+FL) and was set following statutory commission recommendations and stakeholder consultations.