Cabinet approves sugarcane price hike for 2025–26 season
- The Fair and Remunerative Price for sugarcane has been set at ₹355 per quintal for the 2025–26 season, based on a basic recovery rate of 10.25 percent.
- The revised FRP marks a 4.41 percent increase over the previous season, more than double the production cost.
- This decision is expected to benefit around five crore sugarcane farmers and their families, ensuring a more stable income for the agricultural sector.
On April 29, 2025, the Union Cabinet of India, under the leadership of Prime Minister Narendra Modi, sanctioned the Fair and Remunerative Price (FRP) for sugarcane for the upcoming 2025–26 season. The approved FRP is set at ₹355 per quintal, contingent upon a basic recovery rate of 10.25 percent. This decision was made during a meeting of the Cabinet Committee on Economic Affairs, which underscores the government's commitment to supporting the agriculture sector, particularly for the millions of farmers involved in sugarcane cultivation. The new price represents a 4.41 percent increase over the current season’s rates, reflecting a deliberate effort to enhance farmers' earnings in a sector that has faced financial challenges. Officials stated that this adjusted rate is more than double the estimated production costs, which stand at ₹173 per quintal. This means farmers will benefit significantly, given that for each incremental recovery rate above the base, the price will increase by ₹3.46 per quintal. Conversely, if the recovery rate decreases, the price will be adjusted downward, although farmers are protected against losses if the recovery rate falls below 9.5 percent. In such cases, they would still receive a minimum of ₹329.05 per quintal for their sugarcane. The decision is expected to positively impact around five crore sugarcane farmers and their families, as well as approximately five lakh workers employed in sugar mills and related sectors. Such measures are essential in maintaining agricultural stability and ensuring that farmers can continue to thrive. Moreover, it is noteworthy that nearly 99.92 percent of cane dues for the previous 2023–24 sugar season had been cleared by late April 2025, amounting to ₹1,11,782 crore. For the ongoing 2024–25 season, around ₹85,094 crore of the total dues of ₹97,270 crore has already been paid, which equates to about 87 percent clearance. This trend indicates a commitment by the sugar mills and government to resolve dues in a timely manner, promoting a more stable economic environment in the agricultural sector.