Central government has announced a major relief package for sugarcane farmers by increasing the Fair and Remunerative Price (FRP) of sugarcane to ₹365 per quintal for the 2026-27 sugar season. The revised rate will apply at a basic recovery rate of 10.25 percent.
The previous season, the FRP stood at ₹355 per quintal, which means farmers will now receive an additional ₹10 per quintal for their produce. The decision was approved during a Union Cabinet meeting based on recommendations from the Commission for Agricultural Costs and Prices (CACP).
The move is expected to directly benefit millions of sugarcane growers across the country and provide stronger income support amid rising cultivation costs.
The government has also announced an incentive for better-quality sugarcane. Farmers will receive an additional ₹3.56 per quintal for every 0.1 percent increase in recovery above the 10.25 percent benchmark.
This step is expected to encourage the cultivation of high-quality sugarcane varieties while improving farmers’ earnings. According to the government, the revised FRP is more than 200 percent of the estimated production cost, ensuring better profitability for growers.
Officials estimate that the increased FRP could lead to total payments of over ₹1 lakh crore to sugarcane farmers nationwide.
While the Centre fixes the FRP, several states announce a higher State Advised Price (SAP) for sugarcane procurement. Farmers in states such as Uttar Pradesh, Haryana, Punjab, and Uttarakhand often receive higher rates.
Final rates may vary as state governments announce their updated SAP figures from time to time.
Boost to Farmer Income: The increase in FRP is expected to improve farmers’ incomes at a time when expenses on diesel, fertilizers, labour, and irrigation continue to rise. Agricultural experts believe that timely payments by sugar mills will play a crucial role in strengthening the financial condition of sugarcane growers.
Strict Rules for Sugar Mills: The government has clarified that sugar mills must procure sugarcane at FRP or higher rates. This ensures a guaranteed minimum price for farmers, while those producing higher recovery cane will also receive additional benefits.
Support for Cotton Farmers Too: Alongside the sugarcane decision, the government has also approved the ₹5,659 crore Cotton Productivity Mission. The programme is expected to benefit nearly 3.2 million cotton farmers over the next five years through better seeds, advanced technology, research support, and export promotion.
Positive Impact on Rural Economy: Experts believe the FRP hike will not only support farmers but also strengthen rural markets and economic activity in agricultural regions. Farmers are now closely watching how quickly sugar mills release payments and whether states revise their SAP rates further.
