Cabinet approves Fair and Remunerative Price of sugarcane payable by Sugar Mills to sugarcane farmers for sugar season 2025-26
The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has taken a significant step. They approved the Fair and Remunerative Price (FRP) of sugarcane for the sugar season 2025-26 (October – September) at Rs.355/qtl. This decision was made while keeping in view the interest of sugarcane farmers (GannaKisan). The approval provides a premium of Rs.3.46/qtl for each 0.1% increase in recovery over 10.25%. Additionally, there is a reduction in FRP by Rs.3.46/qtl for every 0.1% decrease in recovery.
Government wants to protect the interest of sugarcane farmers
The Government wants to protect the interest of sugarcane farmers. Therefore, it has made a decision. 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.
The cost of production (A2 +FL) of sugarcane 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 sugar season 2025-26 is 4.41% higher than current sugar season 2024-25.
The FRP approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2025-26 (starting w.e.f. 1st October, 2025) by sugar mills. The sugar sector is an important agro-based sector. It impacts the livelihood of about 5 crore sugarcane farmers and their dependents. Around 5 lakh workers are directly employed in sugar mills. It also supports those employed in various ancillary activities, including farm labour and transportation.
Background:
The FRP has been determined based on recommendations from the Commission for Agricultural Costs and Prices (CACP). It was finalized after consulting with State Governments and other stakeholders.
In the previous sugar season 2023-24, out of cane dues payable of ₹ 1,11,782 crores about Rs.1,11,703 crores cane dues have been paid to farmers, as on 28.04.2025; thus, 99.92% cane dues have been cleared. In the current sugar season 2024-25, out of cane dues payable of Rs.97,270 crore about Rs.85,094 crores cane dues have been paid to farmers, as on 28.04.2025; thus, 87% cane dues have been cleared.
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