Cabinet approves sugarcane FRP by 4.41% to Rs 355/qtl for 2025-26

New Delhi: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved a Rs 15 per quintal increase in the Fair and Remunerative Price (FRP) of sugarcane for the 2025–26 crushing season.

With this hike, the new FRP stands at Rs 355 per quintal, up from the existing Rs 340 per quintal, based on a 10.25 per cent sugar recovery rate.

"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," Union Minister for Information and Broadcasting Ashwini Vaishnaw told the media here.

"The CCEA approved Fair and Remunerative Price (FRP) for 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 minister said.

"To protect the interest of farmers, the government 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/qtl for sugarcane in ensuing sugar season 2025-26, " the minister said.

The cost of production 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 per cent is higher by 105.2 per cent over production cost. The FRP for sugar season 2025-26 is 4.41 per cent 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 minister said.

In the previous sugar season 2023-24, out of cane dues payable of Rs 1,11,782 crores about Rs 1,11,703 crores cane dues have been paid to farmers, as on 28.04.2025 thus clearing 99.92 per cent cane dues. 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 clearing 87 per cent cane dues, the minister said.