The Union Cabinet, chaired by Narendra Modi, has approved a Fair and Remunerative Price (FRP) of Rs 365 per quintal for sugarcane for the 2026–27 sugar season (October–September), benefiting nearly 5 crore farmers.
The price is based on a recovery rate of 10.25%, with a premium of Rs 3.56 per quintal for every 0.1% increase and a similar reduction for lower recovery. However, to protect farmers, no deduction will apply for mills with recovery below 9.5%, ensuring a minimum payment of Rs 338.3 per quintal.
The FRP is over 100% higher than the estimated production cost of Rs 182 per quintal and marks a 2.81% increase over 2025–26 levels.
The decision will also benefit around 5 lakh workers employed in sugar mills and allied sectors, reinforcing the importance of the sugar industry in India’s rural economy.
