Centre hikes sugarcane FRP by Rs 10 to 365 per quintal for 2026-27 season

New Delhi: The Centre on Tuesday approved an increase in the fair and remunerative price (FRP) of sugarcane by Rs 10 to Rs 365 per quintal for the 2026-27 sugar season beginning October.

The decision was taken at a Cabinet meeting chaired by Prime Minister Narendra Modi.

The new FRP is for a basic recovery rate of 10.25 per cent. "For every 0.1 per cent increase in recovery above 10.25 per cent, FRP rises by Rs 3.56 per quintal," Information and Broadcasting Minister Ashwini Vaishnaw told reporters after the meeting.

The minister said the FRP is now 200.5 per cent of the all-India weighted average cost of production. Sugar mills are required to purchase sugarcane from farmers at the FRP or a higher price.

The government expects the hike to benefit nearly one crore sugarcane farmers, with total payments to them exceeding Rs 1 lakh crore in the coming season.

It will also support farm labourers and ensure continued operations of sugar mills, providing livelihood to around five lakh workers in sugar factories and ancillary industries.

The move is expected to help maintain steady domestic sugar supply and boost ethanol production from surplus sugarcane.

The FRP is fixed annually based on recommendations of the Commission for Agricultural Costs and Prices (CACP). The government noted that the FRP for sugarcane has been raised every year over the last decade.