Fair and remunerative price (FRP) is the benchmark price below which no sugar factory can purchase sugarcane from farmers.
New Delhi: Keeping in view interest of sugarcane farmers, the government has decided to hike Fair and Remunerative Price (FRP) of sugarcane by 4.41 per cent to Rs 355 per quintal for the upcoming 2025-26 season beginning October, announced Union Minister Ashwini Vaishnaw on Wednesday. The decision in this regard was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.
For the current 2024-25 season, the FRP of sugarcane has been fixed at Rs 340 per quintal.
FRP is the minimum price mandated by the Government of India that sugar mills are legally obligated to pay sugarcane farmers for their produce.
Briefing media after the CCEA meeting, I&B Minister Ashwini Vaishnaw said the FRP of Rs 355 per quintal has been approved for a basic recovery rate of 10.25 per cent, providing a premium of Rs 3.46 per quintal for each 0.1 per cent increase in recovery over and above 10.25 per cent and reduction in FRP by Rs 3.46 per quintal for every 0.1 per cent decrease in recovery.
The government has also decided that there will not be any deduction in the case of sugar mills where recovery is below 9.5 per cent. Such farmers will get Rs 329.05 per cent for sugarcane in the ensuing 2025-26 season, he said.
The FRP approved shall be applicable for the purchase of sugarcane from the farmers in the sugar season 2025-26 (starting October 1, 2025) by sugar mills. The sugar sector is an important agro-based sector that impacts the livelihood of about 5 crore sugarcane farmers and their dependents and around 5 lakh workers directly employed in sugar mills, apart from those employed in various ancillary activities including farm labour and transportation.
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