NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has increased the Fair and Remunerative Price (FRP) of sugarcane for the upcoming 2026-27 sugar season (October-September) by ₹10 per quintal compared to the previous crop year.
The new baseline FRP has been set at ₹365 per quintal for a basic sugar recovery rate of 10.25%.
Under the approved pricing mechanism, the government will provide a premium of ₹3.56 per quintal for each 0.1% increase in recovery above the 10.25% threshold, while a reduction of ₹3.56 per quintal will apply for every 0.1% decrease in recovery.
To protect the interests of small and marginal sugarcane farmers, the government clarified that there will be no price deductions for sugar mills where the recovery rate falls below 9.5%.
Farmers delivering to such mills are guaranteed to receive a minimum price of ₹338.3 per quintal during the 2026-27 season. The government stated that the newly approved FRP is 100.5% higher than the production cost and represents a 2.81% increase over the 2025-26 sugar season.