Approval Granted for ₹10 per Quintal Hike in Sugarcane FRP

06-May-2026 10:27 AM

New Delhi. The Union Cabinet has approved a proposal to fix the Fair and Remunerative Price (FRP) for sugarcane at ₹365 per quintal for the 2026-27 marketing season (October–September). This represents an increase of ₹10 over the FRP of ₹355 per quintal set for the 2025-26 season.

The apex industry body—the Indian Sugar and Bio-energy Manufacturers Association (ISMA)—stated that while this price hike will benefit sugarcane farmers, it will simultaneously increase the cost of sugar production, potentially causing difficulties for the industry. The government should announce a commensurate increase in the ex-factory Minimum Selling Price (MSP) of sugar as soon as possible to provide some relief to millers. There has been no change (increase) in the MSP of sugar over the last five to six years, whereas the FRP for sugarcane has continued to rise every year.

This new FRP for sugarcane will come into effect from October 2026, when the new marketing season for crushing begins. This FRP is based on a sugar recovery rate of 10.25 percent from sugarcane. If the sugar recovery rate fluctuates, the FRP for sugarcane will be adjusted—either increased or decreased—in the same proportion.

It is noteworthy that the FRP for sugarcane had also been increased during the 2023-24 and 2025-26 seasons. Now, it has been hiked once again by 2.81 percent. According to a Union Minister, even if the sugar recovery rate falls below 9.5 percent, millers will still be required to pay for the sugarcane at a rate of ₹338.30 per quintal, as this has been fixed as the minimum price for sugarcane.