2026-27 SS: CCEA approves sugarcane FRP at Rs.365/qtl for farmers
India approved a sugarcane FRP of ₹365 per quintal for 2026-27, with premiums linked to recovery rates. The price remains well above production cost, aims to protect farmers’ income, and will benefit millions involved in sugarcane cultivation and related sectors.
The Cabinet Committee on Economic Affairs has approved Fair and Remunerative Price (FRP) of sugarcane for Sugar Season 2026-27 (October – September) at Rs. 365/qtl for a basic recovery rate of 10.25%, providing a premium of Rs. 3.56/qtl for each 0.1% increase in recovery over and above 10.25%, & reduction in FRP by Rs. 3.56/qtl for each 0.1% decrease in recovery.
To safeguard farmers’ interest, the Government has decided that there shall not be any deduction in case of sugar mills where recovery is below 9.5%. Such farmers will get Rs. 338.3/qtl for sugarcane in the ensuing sugar season 2026-27.
The cost of production (A2 +FL) of sugarcane for the Sugar Season 2026-27 is Rs. 182/qtl. This FRP of Rs. 365/qtl at a recovery rate of 10.25% is higher by 100.5% over production cost. The FRP for Sugar Season 2026-27 is 2.81% higher than the current Sugar Season 2025-26.
The FRP approved shall be applicable for the purchase of sugarcane from the farmers in the Sugar Season 2026-27 (starting w.e.f. 1st October, 2026) by sugar mills.
The Government said that the decision will impact the livelihood of about 5 crore sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities, including farm labour and transportation.
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Source : ChiniMandi
