Sugarcane FRP Hiked to Rs 365/Quintal for 2026-27

New Delhi, May 5 (PTI) The government on Tuesday decided to increase the minimum price that mills have to pay to sugarcane growers by Rs 10 to Rs 365 per quintal for the 2026-27 season starting in October.

The decision on the Fair and Remunerative Price (FRP) of sugarcane was taken at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi.

"The FRP will be Rs 365/quintal for a basic recovery rate of 10.25 per cent," Information & Broadcasting Minister Ashwini Vaishnaw told reporters.

For every 0.1 per cent increase in recovery above 10.25 per cent, FRP rises by Rs 3.56 per quintal, incentivising higher recovery.

The minister said FRP is 200.5 per cent of the cost of production (all India weighted cost).


"Farmers are expected to get more than Rs 1 lakh crore," the minister said.

The government fixes FRP for sugarcane based on the recommendations of the Commission on Agriculture Costs and Prices (CACP).

Sugar mills are mandated to purchase sugarcane from farmers at FRP or more. Sugar season runs from October to September.

The minister said FRP for sugarcane has increased every year in the last ten years.

The move will benefit nearly 1 crore sugarcane farmers, support farm labourers engaged in sugarcane cultivation and ensure the continued operation of sugar factories and a steady domestic sugar supply.

It will provide better livelihood to 5 lakh workers employed in sugar factories and ancillary activities, besides enabling ethanol production from surplus sugarcane, he added.