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Sugarcane FRP 2025-26 Set at ₹355 per Quintal

3 May 20251 min read
AGRICULTURE & RURALSugarcane FRP2025-26 Set at₹355 per Quintal3 May 2025safalsetu.com

Why in the news

The Cabinet Committee on Economic Affairs, chaired by the PM, raised the sugarcane price mills must pay for the 2025-26 season. About 5 crore farmers and 5 lakh mill workers are covered.

Key facts

  • New FRP: ₹355/quintal at 10.25% basic recovery; previous season: ₹340; rise of 4.41%.
  • Estimated cost of production: ₹173/quintal, so FRP is 105.2% above cost.
  • Recovery link: ₹3.46/quintal added for each 0.1% above 10.25% and cut for each 0.1% below.
  • Below 9.5% recovery there is no further cut; farmers get ₹329.05/quintal.
  • Based on CACP advice and talks with states and stakeholders.

Payment record

SeasonDuesPaid
2023-24₹1,11,782 crore₹1,11,703 crore (99.92%)
2024-25 (till 28 April 2025)₹97,270 crore₹85,094 crore (87%)

About FRP

  • The minimum price fixed by the Centre that mills are legally bound to pay cane growers, whatever the market price of sugar.
  • Legal basis: Sugarcane (Control) Order, 1966 under the Essential Commodities Act, 1955.
  • Payable within 14 days of delivery; late payment draws interest up to 15% a year.
  • Sugar commissioners can recover dues via revenue recovery, even attaching mill property.
  • Mills may agree with farmers to pay in instalments.
  • Recommended by CACP (advisory body under the Agriculture Ministry); approved by CCEA; follows Rangarajan Committee suggestions.

Factors in fixing FRP

  1. Cost of production
  2. Returns from alternative crops and general farm price trends
  3. Fair price for sugar consumers
  4. Selling price of sugar
  5. Recovery rate
  6. Earnings from molasses, bagasse and press mud
  7. Reasonable farmer margin for risk and profit

Exam angle

  • Approving body: CCEA; recommending body: CACP.
  • Basic recovery rate: 10.25%.
  • By-products counted: molasses, bagasse, press mud.

Test yourself

1. What is the sugarcane FRP approved for the 2025-26 season?

CCEA approved ₹355/quintal at 10.25% basic recovery.

2. Within how many days of cane delivery must mills pay the FRP?

The FRP must be paid within 14 days; late payment attracts interest up to 15%.

3. Which body recommends the sugarcane FRP before the CCEA approves it?

The Commission for Agricultural Costs and Prices recommends the FRP.