Centre hikes sugarcane price by 4.41% for 2025-26

New Delhi: The government on Wednesday decided to increase the 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.

A decision in this regard was taken in the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi keeping in mind the interest of sugarcane farmers, an official statement said.

For the current 2024-25 season, the sugarcane FRP 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 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.

“The FRP for sugar season 2025-26 is 4.41 per cent higher than current sugar season 2024-25,” the statement said.

A premium of Rs 3.46 per quintal for each 0.1 per cent increase in sugar recovery over and above 10.25 per cent will be provided to farmers. A reduction in FRP by Rs 3.46 per quintal will be for every 0.1 per cent decrease in recovery

rate.