New Delhi [India]: In a major relief to sugarcane farmers, the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the Fair and Remunerative Price (FRP) of sugarcane for the 2025-26 sugar season at Rs 355 per quintal for a basic recovery rate of 10.25%.
This marks a 4.41% increase over the current season’s FRP and is 105.2% higher than the estimated cost of production at Rs 173 per quintal.
Key Features of the New FRP:
- 🔹 Base Price: Rs 355 per quintal for 10.25% recovery rate.
- 🔹 Incentive: Rs 3.46 per quintal for every 0.1% increase in recovery above 10.25%.
- 🔹 Deduction: Rs 3.46 per quintal for every 0.1% decrease below 10.25%, but…
- 🔹 Farmer-Friendly Clause: No deduction for mills with recovery below 9.5%—farmers will still get Rs 329.05 per quintal.
Why It Matters:
- 🧑🌾 Impacts ~5 crore farmers and their families.
- 🏭 Supports 5 lakh mill workers directly, plus many more in transport and farm labor.
- 📈 Boosts farmer income amid rising input costs and variable weather.
Background and Payment Data:
- ✅ FRP is the minimum legally guaranteed price sugar mills must pay farmers.
- 🧮 Based on CACP recommendations and consultation with states and stakeholders.
Cane Payment Status:
- 2023-24 Season: Rs 1,11,703 crore paid out of Rs 1,11,782 crore — 99.92% cleared.
- 2024-25 Season (ongoing): Rs 85,094 crore paid out of Rs 97,270 crore — 87% cleared (as of April 28, 2025).