Cabinet Approves ₹365/qtl FRP for Sugarcane for 2026–27 Season
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a Fair and Remunerative Price (FRP) of ₹365 per quintal for sugarcane for the 2026–27 sugar season.
The FRP has been fixed for a basic recovery rate of 10.25 per cent. Farmers will receive a premium of ₹3.56 per quintal for every 0.1 per cent increase in sugar recovery above this level, while a similar reduction will apply for lower recovery.
To safeguard farmers’ interests, the government has decided that there will be no deduction in FRP for mills where recovery falls below 9.5 per cent. In such cases, farmers will receive ₹338.3 per quintal.
The approved FRP is about 2.81 per cent higher than the current 2025–26 season and significantly above the estimated cost of production, which stands at ₹182 per quintal. The government said the new FRP is over 100 per cent higher than production costs, ensuring remunerative returns to farmers.
The revised price will be applicable for procurement of sugarcane by mills during the 2026–27 sugar season, which runs from October to September.
According to official estimates, the decision is expected to benefit around 5 crore sugarcane farmers and their dependents, along with nearly 5 lakh workers employed in sugar mills and related industries.
The FRP has been determined based on the recommendations of the Commission for Agricultural Costs and Prices, following consultations with state governments and other stakeholders.
The government also highlighted progress in cane dues payments. In the 2024–25 season, about 99.5 per cent of dues amounting to ₹1,02,209 crore have been cleared. For the ongoing 2025–26 season, around 88.6 per cent of dues, totalling ₹99,961 crore, have been paid as of April 20, 2026.
The sugar sector remains a key agro-based industry, playing a crucial role in rural livelihoods and supporting a wide network of ancillary activities including transportation and farm labour.
