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 (October–September) at a base recovery rate of 10.25%.
The decision includes a premium of ₹3.56 per quintal for every 0.1% increase in recovery above 10.25% and a corresponding reduction of ₹3.56 per quintal for every 0.1% decrease. To protect farmers, no deduction will apply for mills with recovery below 9.5%, ensuring a minimum price of ₹338.3 per quintal.
The FRP, based on recommendations of the Commission for Agricultural Costs and Prices (CACP) and consultations with stakeholders, is 2.81% higher than the 2025–26 season and stands 100.5% above the estimated production cost of ₹182 per quintal.
Applicable from October 1, 2026, the measure aims to benefit around 5 crore sugarcane farmers, their dependents, and about 5 lakh workers employed in sugar mills and related sectors.
The government also highlighted strong payment performance, noting that 99.5% of ₹1,02,687 crore dues for the 2024–25 season have been cleared, while 88.6% of ₹1,12,740 crore dues for the ongoing 2025–26 season have been paid as of April 20, 2026
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Naresh Khanna – 10 February 2025
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