Sugarcane FRP 2025-26 Set at ₹355 per Quintal
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
| Season | Dues | Paid |
|---|---|---|
| 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
- Cost of production
- Returns from alternative crops and general farm price trends
- Fair price for sugar consumers
- Selling price of sugar
- Recovery rate
- Earnings from molasses, bagasse and press mud
- 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.