Sugarcane Farmers Get Sweet Deal: Cabinet Hikes FRP to ₹355/qtl for 2025-26

New Delhi: Sugarcane farmers across the nation are set to benefit from a hike in the Fair and Remunerative Price (FRP) for the upcoming 2025-26 sugar season. The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, today approved an FRP of ₹355 per quintal, a 4.41% increase from the current season.

This decision aims to bolster the income of approximately 5 crore sugarcane farmers and their dependents, as well as the 5 lakh workers employed in sugar mills and related industries.

Key Highlights:

• FRP Increased: Farmers will receive ₹355/qtl at a basic recovery rate of 10.25%.
• Premium for Higher Recovery: An additional ₹3.46/qtl will be given for every 0.1% increase in sugar recovery above 10.25%.
• Protection for Lower Recovery: In a significant move, farmers whose sugar recovery is below 9.5% will not face any FRP deduction, ensuring they receive a minimum of ₹329.05/qtl.
• Lucrative Price: The approved FRP is over 105% higher than the cost of sugarcane production, estimated at ₹173/qtl.
• Effective October 2025: The new FRP will be applicable for sugarcane purchased by sugar mills from October 1, 2025.

The government emphasized that this decision, based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and consultations with states and stakeholders, underscores its commitment to the welfare of sugarcane farmers.

Furthermore, the government highlighted the significant progress in clearing past dues. For the 2023-24 season, over 99.9% of the ₹1.11 lakh crore payable to farmers has been disbursed. For the current 2024-25 season, 87% of the ₹97,270 crore in dues has already been paid.

This FRP hike is expected to provide a significant boost to the rural economy and ensure the sustained growth of the crucial sugar sector.