CCEA Approves ₹365/quintal FRP for Sugarcane for 2026-27

• 06 May 2026

On 5th May 2026, the Cabinet Committee on Economic Affairs approved a Fair and Remunerative Price (FRP) of ₹365 per quintal for sugarcane for the 2026-27 sugar season (October-September).

Key Points

• Recovery Rate Basis:
  • Fixed at 10.25% sugar recovery rate.
  • Premium of ₹3.56/quintal for every 0.1% increase above benchmark.
  • Similar reduction for lower recovery.
• Farmer Safeguard Measure:
  • No deduction if recovery falls below 9.5%.
  • Farmers in such cases receive ₹338.3/quintal.
• Comparison with Previous Season:
  • Around 2.81% higher than 2025-26 FRP.
  • More than 100% above estimated production cost of ₹182/quintal.
• Beneficiaries:
  • Around 5 crore sugarcane farmers and dependents.
  • Nearly 5 lakh sugar mill and allied sector workers.
• Basis for Decision:
  • Recommendations of Commission for Agricultural Costs and Prices.
  • Consultations with states and stakeholders.
• Sector Importance:
  • Sugar industry is major agro-based sector.
  • Supports rural employment, transport, and ancillary activities.
• Overall Significance:
  • Ensures remunerative returns for farmers.
  • Strengthens rural economy and sugar sector stability.
  • Supports a timely cane payment ecosystem.