Cabinet panel clears proposal to increase sugarcane FRP to Rs 355 per quintal

The Cabinet Committee on Economic Affairs on Wednesday approved a proposal to increase sugarcane Fair and Remunerative Price payable by Sugar Mills to sugarcane farmers for sugar season 2025-26 to Rs 355 per quintal, Minister of Information and Broadcasting Ashwini Vaishnaw said.

In a press briefing after the Cabinet meeting, Mr Vaishnaw said the decision would benefit 5 crore sugarcane farmers and their dependents, as well as 5 lakh workers employed in the sugar mills and related ancillary activities.

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“Keeping in view the interest of sugarcane farmers (GannaKisan), the Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved Fair and Remunerative Price (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,” Mr Vaishnav added.

With a view to protect the interest of sugarcane farmers, it has also been 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 the ensuing sugar season 2025-26,” said the minister in his presentation.

“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,” he added.