Amid a drop in sugar production during the current season (October 2024 to September 2025), the Centre on Wednesday increased the fair and remunerative price (FRP) of sugarcane by Rs 15 (or 4.41%) to Rs 355 per quintal for the sugar season 2025-26.
The new FRP — it is the minimum price mandated by the Government that sugar mills are obligated to pay farmers for their produce — will come into effect October 1, 2025.
“Keeping in view interest of sugarcane farmers, the Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri has approved FRP of sugarcane for sugar season 2025-26 (October-September) at Rs 355/qtl for a basic recovery rate of 10.25%, providing a premium of Rs 3.46/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by Rs 3.46/qtl for every 0.1% decrease in recovery,” according to an official statement issued after the CCEA meeting.
The FRP hike will encourage sugarcane farmers to plant more when sugar production is seeing a dip. According to Indian Sugar and Bio-Energy Manufacturers Association, as on April 30, estimated sugar production is 257 LMT; and overall production in the whole season is likely to be 264 LMT, which was 319 LMT last year.
“However, the Government with a view to protect the 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%. Such farmers will get Rs 329.05/qtl for sugarcane in ensuing sugar season 2025-26,” it said.
According to the statement, the cost of sugarcane production for the sugar season 2025-26 is Rs 173/qtl. “This FRP of Rs 355/qtl at a recovery rate of 10.25% is higher by 105.2% over production cost. The FRP for 2025-26 is 4.41% higher than current sugar season,” it said.
