New Delhi, May 6: In a significant move for sugarcane farmers, the Economic Affairs Committee of the Union Cabinet, chaired by Prime Minister Narendra Modi, has set the Fair and Remunerative Price (FRP) for sugarcane at ₹365 per quintal for the 2026-27 sugar production season (October-September). Union Home Minister Amit Shah praised the Modi government for this farmer-friendly decision, stating it will greatly benefit over 50 million sugarcane farmers across the country.
In a post on the social media platform X, Shah highlighted that the government has approved the FRP of ₹365 per quintal for the 2026-27 season, directly benefiting more than 5 lakh workers associated with sugarcane farming.
The price determination is based on a minimum recovery rate of 10.25%. For every 0.1% increase in recovery, a premium of ₹3.56 per quintal will be added, while a decrease of the same percentage will result in a reduction of ₹3.56 per quintal.
To protect the interests of sugarcane farmers, the government has also decided that no deductions will be made for sugar mills with a recovery rate below 9.5%. This recovery rate indicates the percentage of sugar obtained from the total weight of sugarcane. Farmers in this category will receive ₹338.3 per quintal for the upcoming 2026-27 sugar production season.
The production cost of sugarcane for the 2026-27 season, which includes actual cash expenses and the value of family labor, is ₹182 per quintal. The approved FRP of ₹365 per quintal is 100.5% higher than the production cost at a recovery rate of 10.25%. This FRP also reflects an increase of 2.81% compared to the previous year’s price.
The approved FRP will be applicable for sugar mills purchasing sugarcane during the 2026-27 sugar production season, starting from October 1, 2026. The sugar production sector is crucial for the economy, providing livelihoods for approximately 50 million sugarcane farmers and their dependents, along with nearly 5 lakh workers directly employed in sugar mills. Additionally, many people are engaged in various ancillary activities, including agricultural labor and transportation.
The FRP determination was made based on recommendations from the Commission for Agricultural Costs and Prices (CACP) and consultations with state governments and other stakeholders.
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