Sugar Industry Concerned Over ₹10 Hike in Sugarcane FRP

11-May-2026 08:32 PM

New Delhi. The Central Government has fixed the Fair and Remunerative Price (FRP) for sugarcane at ₹365 per quintal for the 2026-27 season, marking an increase of ₹10. An interesting fact is that, from the perspective of sugarcane growers, this hike falls short of expectations; conversely, the sugar industry is troubled and concerned by this very increase.

Although the sugar industry has welcomed this government decision—keeping the welfare of farmers in mind—it is simultaneously plagued by fears of eroding profit margins, given that there has been no corresponding hike in the ex-factory Minimum Selling Price (MSP) of sugar or in ethanol prices. The industry argues that while the FRP for sugarcane has witnessed unilateral increases, the MSP for sugar has remained stagnant for the past six years.

On the other hand, farmer organizations contend that, considering the rising costs of cultivation, harvesting, and transportation, this ₹10 hike is insufficient. They point out that the FRP for sugarcane has seen an increase of merely 2.81 percent, whereas the actual hike should have been substantially higher. Meanwhile, the Director General of ISMA has stated that this price hike will generate an additional income of ₹15,000–₹20,000 crore for the country's approximately 55 million sugarcane growers.