New Delhi, May 5: The Economic Affairs Committee of the Central Cabinet, chaired by Prime Minister Narendra Modi, has set the fair and remunerative price for sugarcane at ₹365 per quintal for the sugar production season 2026-27 (October-September). This price is based on a recovery rate of 10.25%, which includes a premium of ₹3.56 per quintal for every 0.1% increase in recovery and a deduction of the same amount for every 0.1% decrease.
To protect the interests of sugarcane farmers, the government has decided that no deductions will be made for sugar mills with a recovery rate below 9.5%. The recovery rate indicates the percentage of sugar obtained from the total weight of sugarcane. Farmers will receive ₹338.3 per quintal for sugarcane in the upcoming sugar production season 2026-27.
The cost of sugarcane production for the season 2026-27 (including actual cash expenses and family labor value) is ₹182 per quintal. At a recovery rate of 10.25%, the fair and remunerative price of ₹365 per quintal is 100.5% higher than the production cost. This price is also 2.81% higher compared to the previous season 2025-26.
The approved fair and remunerative price will apply to sugar mills purchasing sugarcane from farmers during the sugar production season 2026-27, which begins on October 1, 2026. The sugar production sector is a vital agricultural industry that supports nearly 50 million sugarcane farmers and their dependents, along with about 500,000 workers directly employed in sugar mills. Additionally, many people are engaged in various supporting activities, including agricultural labor and transportation.
The fair and remunerative price has been determined based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) and consultations with state governments and other stakeholders.
In the previous sugar production season 2024-25, out of the ₹1,02,687 crore due in sugarcane payments, approximately ₹1,02,209 crore was paid to farmers by April 20, 2026, resulting in about 99.5% of the dues being settled. In the current sugar production season 2025-26, out of the ₹1,12,740 crore due, farmers have received approximately ₹99,961 crore by April 20, 2026, which accounts for about 88.6% of the outstanding payments.
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