Centre hikes sugarcane price by 4.41% to ₹355 per quintal for 2025-26

Union Minister Ashwini Vaishnaw briefing media on Cabinet decisions on April 30, 2025.
| Photo Credit: Shiv Kumar Pushpakar

The government on Wednesday (April 30, 2025) decided to increase the fair and remunerative price (FRP) of sugarcane by 4.41% to ₹355 per quintal for the upcoming 2025-26 season beginning October.

A decision in this regard was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi keeping in mind the interest of sugarcane farmers, an official statement said.

For the current 2024-25 season, the sugarcane FRP has been fixed at ₹340 per quintal.

FRP is the minimum price mandated by the Government of India that sugar mills are legally obligated to pay sugarcane farmers for their produce.

Briefing media after the meeting, I&B Minister Ashwini Vaishnaw said the FRP of ₹355 per quintal has been approved for a basic recovery rate of 10.25%.

“The FRP for sugar season 2025-26 is 4.41% higher than current sugar season 2024-25,” the statement said.

A premium of ₹3.46 per quintal for each 0.1% increase in sugar recovery over and above 10.25% will be provided to farmers. A reduction in FRP by ₹3.46 per quintal will be for every 0.1% decrease in recovery rate.

The government has also decided that there will not be any deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get ₹329.05 per cent for sugarcane in the ensuing 2025-26 season.

According to the statement, the cost of production of sugarcane for the sugar season 2025-26 is ₹173 per quintal. The FRP of ₹355 per quintal fixed for 2025-26 at a recovery rate of 10.25% is higher by 105.2% over production cost.

The sugar sector is an important agro-based sector that impacts the livelihood of about five crore sugarcane farmers and their dependents and around five lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.

The FRP has been determined on the basis of recommendations of the Commission for Agricultural Costs and Prices (CACP) and after consultation with state governments and other stakeholders.

As of April 28, about 87% of total cane dues of ₹97,270 crore have been paid to farmers in the 2024-25 season, while 99.92% of total cane dues of ₹1,11,782 crores were paid to farmers for 2024-25.