The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved a Fair and Remunerative Price (FRP) of ₹365 per quintal for sugarcane for the upcoming 2026–27 sugar season (October–September). This marks a Rs 10 per quinta increase over the previous 2025–26 season's price of Rs. 355, representing a hike of 2.81 percent.
The approved FRP is based on a basic sugar recovery rate of 10.25 percent. Farmers will receive a premium of Rs. 3.56 per quintal for every 0.1 percent increase in recovery above this benchmark, while the FRP will be reduced by the same amount for every 0.1 percent decrease. However, the government has ensured that no deduction will apply for mills with recovery below 9.5 percent. In such cases, farmers will still receive Rs.338.3 per quintal in the 2026–27 season.
The cost of sugarcane production (A2+FL) for the upcoming season has been estimated at Rs. 182 per quintal, making the approved FRP of Rs. 365 per quintal over 100 percent higher than production cost.
The revised FRP will be applicable for sugar mills procuring sugarcane from farmers starting October 1, 2026. The sugar sector plays a crucial role in India’s rural economy, supporting the livelihoods of nearly 5 crore sugarcane farmers and their families, along with around 5 lakh workers employed in sugar mills and related activities such as transportation and farm labour.
The FRP has been fixed based on recommendations of the Commission for Agricultural Costs and Prices (CACP), after consultations with state governments and other stakeholders.
According to official data, in the 2024–25 sugar season, about 99.5 percent of the total cane dues of Rs. 1,02,687 crore were cleared, with Rs. 1,02,209 crore paid to farmers as of April 20, 2026. In the ongoing 2025–26 season, around 88.6 percent of the dues, Rs. 99,961 crore out of Rs. 1,12,740 crore, have been paid so far, indicating steady progress in payments to farmers.