Cabinet Hikes Sugarcane Price for 2025–26 Season

In a significant move to safeguard the interests of sugarcane farmers, the Union Cabinet has approved the FRP of ₹355/qtl for the 2025-26 season, which begins from October 1, 2025. This rate is based on a basic recovery rate of 10.25%, with additional premiums and protections built in for both high and low recovery percentages. This decision will directly benefit the agricultural economy and promote stability in the agro-based sugar sector.

Why in the News?

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has approved the Fair and Remunerative Price (FRP) of sugarcane for the sugar season 2025–26 at ₹355 per quintal, benefiting around 5 crore sugarcane farmers and 5 lakh sugar mill workers.

Key Decisions

• FRP Fixed: ₹355 per quintal for a basic recovery rate of 10.25% for the sugar season 2025–26 (October to September).
• Incentive Clause: ₹3.46/qtl premium for every 0.1% increase in sugar recovery above 10.25%.
• Deduction Clause: ₹3.46/qtl reduction for every 0.1% decrease in recovery below 10.25%.
• Protection for Low Recovery Farmers: No deductions for sugar mills with less than 9.5% recovery rate. Such farmers will receive a minimum of ₹329.05/qtl.
• Cost of Production: Estimated at ₹173/qtl (A2 + FL), making the new FRP 105.2% higher than production cost.
• Year-on-Year Hike: The approved FRP is 4.41% higher than the FRP for the sugar season 2024–25.

Beneficiaries

• Around 5 crore sugarcane farmers and their dependents.
• Around 5 lakh workers directly employed in sugar mills.
• Thousands involved in ancillary activities (transportation, labor, etc.)

Implementation Date

• Effective from 1st October 2025.

Dues Cleared

• 2023–24: Out of ₹1,11,782 crore, ₹1,11,703 crore (99.92%) paid.
• 2024–25 (as of April 28, 2025): Out of ₹97,270 crore, ₹85,094 crore (87%) paid.

FRP Determination

• Based on recommendations by Commission for Agricultural Costs and Prices (CACP) and consultations with State Governments and stakeholders.

Summary/Static	Details
Why in the news?	Cabinet Hikes Sugarcane Price for 2025–26 Season
Sugar Season	2025–26 (Oct–Sep)
Approved FRP	₹355/qtl @ 10.25% recovery rate
Increase over Production Cost	105.2%
Year-on-Year Increase in FRP	4.41% over 2024–25
Beneficiaries	5 crore farmers + 5 lakh mill workers
Incentive	(per 0.1% > 10.25%) ₹3.46/qtl
Deduction	(per 0.1% < 10.25%) ₹3.46/qtl
Given By	Commission for Agricultural Costs and Prices (CACP)