The government has approved a fair and remunerative price (FRP) of ₹355 per quintal for sugarcane for the 2025–26 season.
This is an increase from ₹340 per quintal fixed in the previous season.
The price is based on a sugar recovery rate of 10.25%.
If the recovery is higher, farmers will get ₹3.46 more per quintal for every 0.1% increase.
For every 0.1% drop in recovery, ₹3.46 will be reduced.
However, if the recovery is below 9.5%, no deduction will be made.
Such farmers will get at least ₹329.05 per quintal.
The cost of producing sugarcane is estimated at ₹173 per quintal.
About 5 crore farmers and 5 lakh sugar mill workers depend on sugarcane farming.
The FRP was decided based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and talks with States and stakeholders.
In 2023–24, ₹1.11 lakh crore was payable to farmers and 99.92% of it has been paid.
In the current season, 87% of the ₹97,270 crore dues have been cleared so far.
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