New Delhi [India], April 30 : The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2025-26 (October-September) at Rs 355 per quintal for a basic recovery rate of 10.25 per cent, providing a premium of Rs 3.46 per quintal for each 0.1 per cent increase in recovery over and above 10.25 per cent, and reduction in FRP by Rs 3.46 per quintal for every 0.1 per cent decrease in recovery.
The FRP is the minimum price that sugar mills have to pay to sugarcane farmers.
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 per cent.
Such farmers will get Rs 329.05 per quintal for sugarcane in ensuing sugar season 2025-26.
The cost of production of sugarcane for the sugar season 2025-26 is Rs 173 per quintal. This FRP of Rs 355 per quintal at a recovery rate of 10.25 per cent is higher by 105.2 per cent over production cost.
The FRP for the sugar season 2025-26 is 4.41 per cent higher than the current sugar season 2024-25.
"The FRP approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2025-26 (w.e.f. 1st October, 2025) by sugar mills. The sugar sector is an important agro-based sector that impacts the livelihood of about five crore sugarcane farmers and their dependents and around five lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation," the government said.
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 Rs 1,11,782 crore about Rs 1,11,703 crore cane dues have been paid to farmers, as on April 28, 2025; thus, 99.92 per cent 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 crore cane dues have been paid to farmers, as on April 28, 2025; thus, 87 per cent cane dues have been cleared.
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