The North News
New Delhi, April 30
In a move aimed at bolstering the rural economy and protecting the interests of sugarcane farmers, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved a hike in the Fair and Remunerative Price (FRP) of sugarcane for the 2025–26 season. The new FRP has been set at ₹355 per quintal for a basic recovery rate of 10.25%, with a premium of ₹3.46 for every 0.1% increase in recovery above this benchmark. Conversely, the FRP will be reduced by ₹3.46 for every 0.1% fall in recovery rate, said Union Minister Ashwini Vaishnaw on Wednesday. While sharing details, he said that however, in a protective measure for small farmers, the government has ruled out any deductions for sugar mills with recovery rates below 9.5%. In such cases, farmers will still receive a minimum of ₹329.05 per quintal, ensuring a safety net for lower-yield regions, he added.
Vaishnaw further said that the cost of production (A2+FL) for sugarcane in 2025–26 is estimated at ₹173 per quintal, making the approved FRP more than 105% higher than the cost incurred by farmers. Compared to the current season (2024–25), the FRP represents a 4.41% increase.
The revised FRP will take effect from 1 October 2025, when the new sugar season begins. The decision is expected to directly impact nearly five crore sugarcane growers and their families, along with five lakh workers employed in sugar mills across India. The government underlined that the sugar industry remains one of the country’s most significant agro-based sectors, with wide-reaching implications for rural employment, farm labour, and transportation services.
