Centre Hikes Sugarcane FRP by ₹15; New Price Set at ₹355/Quintal for Upcoming Season

In a significant decision benefiting sugarcane farmers across the country, the central government has announced an increase of ₹15 per quintal in the Fair and Remunerative Price (FRP) of sugarcane. With this hike, the FRP for sugarcane will now be ₹355 per quintal for the upcoming sugar season.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the increase in the FRP for sugarcane for the crushing season 2025-26. This revision raises the FRP from the current ₹340 per quintal to ₹355 per quintal. The new rate will be applicable for sugarcane purchases starting from October 1, 2025.

The central government has fixed the FRP of ₹355 per quintal on a base sugar recovery rate of 10.25%. For every 0.1% increase in recovery above this level, sugar mills will provide a premium of ₹3.46 per quintal to farmers. Conversely, for every 0.1% decrease in recovery, there will be a reduction of ₹3.46 per quintal in the FRP. However, sugar mills with a recovery rate below 9.5% will not be subject to further deductions, and farmers in these regions will receive an FRP of ₹329.05 per quintal for their sugarcane.

Sugarcane farmers across the nation have been demanding an increase in sugarcane prices for a long time, citing rising input costs. While several states like Uttar Pradesh, Haryana, and Punjab determine their own State Advised Price (SAP), which is often higher than the FRP, the central government’s decision is expected to put pressure on these states to increase SAP for next crushing season. Notably, Uttar Pradesh has kept SAP freez for the current crushing season at the last year’s crushing season. Farmers have been demanding a sugarcane price of ₹450 per quintal. Currently, the SAP for early-maturing sugarcane varieties in Uttar Pradesh is ₹370 per quintal.

For the sugar season 2025-26, the central government has estimated the cost of sugarcane production (A2+FL) to be ₹173 per quintal. Based on this, the government claims that the FRP of ₹355 per quintal is 105.2% higher than the production cost, more than double. The FRP for the upcoming sugar season is 4.41% higher than the FRP for the current sugar season 2024-25.

Earlier, in February 2024, ahead of the Lok Sabha elections, the central government had increased the FRP for the 2024-25 season from ₹315 to ₹340 per quintal. Approximately 5 crore sugarcane farmers and their families, along with about 5 lakh people employed in sugar factories and related industries, depend on sugarcane cultivation in India. Sugarcane farmers hold significant political importance in major states like Uttar Pradesh, Maharashtra, and Karnataka.