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Key Points

The Modi government has approved a 4.4% increase in sugarcane FRP to Rs 355 per quintal for the 2025-26 season. This decision guarantees farmers over 105% profit margin compared to production costs. Special provisions protect farmers supplying to mills with lower recovery rates. The move impacts 5 crore sugarcane growers and half a million mill workers nationwide.

Key Points: Modi Cabinet Approves 4.4% Hike in Sugarcane FRP to Rs 355

  • 4.4% FRP hike benefits 5 crore sugarcane farmers
  • No price cuts for mills with recovery below 9.5%
  • Rs 355 rate ensures 105% profit margin
  • Previous season saw 99.92% dues cleared
2 min read

Fair prices for sugar raised by 4.4% to Rs 355 per quintal at Cabinet meeting

Cabinet raises sugarcane FRP to Rs 355 per quintal for 2025-26 season, ensuring 105% profit margin over production costs for farmers.

"The FRP approved shall be applicable for purchase of sugarcane from farmers in 2025-26 season by sugar mills - Government Statement"

New Delhi, April 30

The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved Fair and Remunerative Price (FRP) of sugarcane for sugar season 2025-26 (October-September) at Rs 355 per quintal for a basic recovery rate of 10.25 per cent, providing a premium of Rs 3.46 per quintal for each 0.1 per cent increase in recovery over and above 10.25 per cent, and reduction in FRP by Rs 3.46 per quintal for every 0.1 per cent decrease in recovery.

The FRP is the minimum price that sugar mills have to pay to sugarcane farmers.

However, the government with a view to protect interest of sugarcane farmers has also decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5 per cent.

Such farmers will get Rs 329.05 per quintal for sugarcane in ensuing sugar season 2025-26.

The cost of production of sugarcane for the sugar season 2025-26 is Rs 173 per quintal. This FRP of Rs 355 per quintal at a recovery rate of 10.25 per cent is higher by 105.2 per cent over production cost.

The FRP for the sugar season 2025-26 is 4.41 per cent higher than the current sugar season 2024-25.

"The FRP approved shall be applicable for purchase of sugarcane from the farmers in the sugar season 2025-26 (w.e.f. 1st October, 2025) by sugar mills. The sugar sector is an important agro-based sector that impacts the livelihood of about five crore sugarcane farmers and their dependents and around five lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation," the government said.

The FRP has been determined on the basis of recommendations of Commission for Agricultural Costs and Prices (CACP) and after consultation with state governments and other stake-holders.

In the previous sugar season 2023-24, out of cane dues payable of Rs 1,11,782 crore about Rs 1,11,703 crore cane dues have been paid to farmers, as on April 28, 2025; thus, 99.92 per cent 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 crore cane dues have been paid to farmers, as on April 28, 2025; thus, 87 per cent cane dues have been cleared.

- ANI

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Reader Comments

R
Rajesh K.
Finally some good news for our farmers! Sugarcane growers have been struggling with input costs for years. A 4.4% increase may seem small but will make a real difference at village level. Hope mills actually pay on time this season 🤞
P
Priya M.
Good step but what about controlling sugar prices for consumers? Last year my monthly grocery bill went up by ₹200 just because of sugar. Government should balance farmer welfare with public interest.
A
Amit S.
My uncle is a sugarcane farmer in UP. He says mills still owe him money from last season. FRP increase is meaningless if payment delays continue. Government must enforce stricter penalties on defaulting mills!
S
Sunita R.
As someone from Maharashtra's sugar belt, I welcome this decision. The premium for higher recovery rate will encourage farmers to adopt better farming techniques. Jai Kisan! 🙏
V
Vikram J.
Why is the FRP increase higher than inflation rate? This will directly impact biscuit, sweet, and beverage manufacturers. Small halwais and tea stall owners will suffer the most.
N
Neha P.
The 99.92% payment clearance statistic is impressive! Shows government is serious about farmer welfare. Maybe next they can focus on reducing water-intensive sugarcane cultivation in drought-prone areas.

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