New Delhi: The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, today sanctioned the Fair and Remunerative Price (FRP) for sugarcane for the sugar season 2025-26 (October to September) at ₹355 per quintal, based on a basic recovery rate of 10.25%. Additionally, a premium of ₹3.46 per quintal will be granted for each 0.1% increase in recovery above the 10.25% threshold, while the FRP will be reduced by ₹3.46 per quintal for every 0.1% decrease in recovery.
The FRP has been determined based on recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with State Governments and other stakeholders. The CCEA said the remunerative price was decided keeping in view the interest of sugarcane farmers.
However, the Government said that to protect the interests of sugarcane farmers, it also decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get ₹329.05/quintal for sugarcane in the ensuing sugar season 2025-26.
The cost of production (A2 + FL) of sugarcane for the sugar season 2025-26 is ₹173/quintal. This FRP of ₹355/quintal at a recovery rate of 10.25% is higher by 105.2% over the production cost. The FRP for the sugar season 2025-26 is 4.41% higher than the current sugar season 2024-25.
The FRP approved shall be applicable for the purchase of sugarcane from the farmers in the sugar season 2025-26 (starting with effect from October 1, 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.
In the previous sugar season 2023-24, out of the cane dues payable of ₹ 1,11,782 crores, about ₹ 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 the cane dues payable of ₹97,270 crore, about ₹85,094 crores of cane dues have been paid to farmers, as on April 28, 2025; thus, 87% cane dues have been cleared, the government claimed.
– global bihari bureau
