Government Approves Sugarcane Price for 2026-27 Season
In a significant move to support sugarcane farmers, the Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has approved the Fair and Remunerative Price (FRP) for the upcoming Sugar Season 2026-27. The new FRP is set at Rs. 365 per quintal for a basic recovery rate of 10.25%. Farmers will also benefit from a premium of Rs. 3.56 for each 0.1% increase in recovery, while reductions apply for lower recovery rates.
The government has made provisions to safeguard farmers’ interests by ensuring that no deductions will be made for sugar mills with a recovery rate below 9.5%. This means such farmers can expect a guaranteed payment of Rs. 338.3 per quintal for their sugarcane in the upcoming season.
With the cost of sugarcane production (A2+FL) set at Rs. 182 per quintal for the 2026-27 season, the approved FRP reflects a substantial 100.5% increase over production costs. This year’s price is also a 2.81% increase compared to the FRP for the current Sugar Season 2025-26.
Impact on Farmers and Employment
The FRP is critical for farmers as the sugar industry plays a vital role in the livelihood of approximately 50 million sugarcane farmers and their families. Additionally, around 500,000 workers are directly employed in sugar mills, along with many others engaged in related activities like farm labor and transportation.
Background Information
The government established this FRP following recommendations from the Commission for Agricultural Costs and Prices (CACP), as well as consultations with state governments and other relevant stakeholders.
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